Kickback is defined as what?

• A. The return of a portion of money received in a sale or contract, often secretly or illegally, in exchange for favors
• B. A charitable donation
• C. A standard discount given to all customers
• D. A licensing fee charged by a hospital

Answer: (A)

Kickback is the secret, often illegal, return of part of money from a sale or contract in exchange for favors. In healthcare, this kind of arrangement biases decisions, such as referrals or the choice of suppliers, because payments are tied to influence rather than patient need or merit. It’s different from a charitable donation, which is voluntary and not tied to a business decision; from a standard discount, which is transparent and offered broadly without favors; and from a legitimate licensing or facility fee, which is a proper charge for services or rights and not a covert payment for preferential treatment.