Ozempic, Wegovy, and other GLP-1 medications have impacted conversations regarding health throughout the country. From whether or not insurance should cover the drug to the risk/benefit and potential side effects, the conversations are part of a bigger issue: nutrition.
This was highlighted by pushback from president-elect Donald Trump’s nominee for the Department of Health and Human Services, Robert F. Kennedy Jr., who has stated that he would prefer Americans focus on their diet instead of these types of medication. This concept of food as medicine is not a new one. Given we know that chronic diseases are often connected to poor nutrition, it is no surprise that healthcare experts expect a surge in the need for nutrition services.
As the focus on preventive care increases, healthcare providers are recognizing the importance of nutrition in managing chronic diseases and improving overall patient health. This shift not only enhances patient outcomes but also opens new revenue streams for healthcare businesses.
Revenue generation through nutritional services
Options for growth can include:
- Diversification of services: Offering nutrition counseling and dietary management can attract a broader client base. This diversification helps in tapping into new market segments.
- Enhanced patient retention: Providing comprehensive care, including nutrition services, improves patient satisfaction and retention. Satisfied patients are more likely to return and refer others.
However, these potential financial benefits can come with the need to navigate complex legal landscapes, particularly concerning regulations like the Stark Law and the Anti-Kickback Statute.
Legal considerations in a nutrition-focused healthcare business
It is important to remain compliant with applicable regulations to avoid penalties.
Depending on the particulars of your current structure and investment options, two examples can include the Stark Law and the Anti-Kickback Statute (AKS). The Stark Law pertains to physician self-referral. It does not allow physicians to refer patients to receive “designated health services” payable by Medicare or Medicaid from entities where the physician or an immediate family member has a financial interest unless an exception applies. The AKS makes it illegal to receive remuneration in exchange for referrals. In a nutrition-focused business, physicians and investors are wise to move forward with care if they have a financial interest in the entity providing nutrition services.
The integration of nutrition-focused services in a healthcare business not only offers promising financial benefits but also supports a holistic approach to health management. However, such businesses must carefully consider and adhere to relevant healthcare regulations. Ensuring compliance with laws like the Stark Law and the Anti-Kickback Statute is essential to operating legally and ethically in the healthcare market. By addressing these legal considerations, businesses can effectively harness the potential of nutrition-based services without compromising on compliance.
Attorney John Rivas is responsible for this communication.
