CAPITAL STRATEGY INSIGHTS: Reimagining the Process #029

/in , ,

October 19, 2026

#029 Independence, Part 2 

Here’s another reason to ask your medical equipment consultant, “Who else pays you?” In Part 1 of Independence, we looked at corporate funding and ownership of the consultant’s business. In Part 2 of Independence, we want to ask, “Does a manufacturer or vendor compensate you for equipment placed into your project?”

Words of wisdom: Follow the money. Again.

There is a federal Anti-Kickback Statute (AKS), 42 U.S.C. § 1320a-7b(b). It’s a criminal statute that prohibits knowingly and willfully offering, paying, soliciting, or receiving anything of value to induce or reward the purchase, order, or referral of items or services paid for by federal healthcare programs such as Medicare, Medicaid, and TRICARE. 

Well, outside of private pay or insurance, that about covers everything.

There is pretty broad interpretation of this statute. Things to watch for:

  • Free or bundled services tied to purchases. Offering a free or discounted professional services in exchange for specified equipment purchases can be a red flag.
  • Other Compensation. Suppliers paying consultants a finder’s fee, rebates, or a percentage of sales they generate is another red flag.

Disclosure is key. Transparency is a must. Bottom line: your equipment consultant should not be compensated by other sources without your knowledge so that you can determine how you are spending your dollars.

I personally dealt with a situation where I was approached by a manufacturer’s sales manager complaining that he was paying marketing fees to both the GPO and to a consultant. That doesn’t lower the cost of healthcare, and it represents a potential conflict when serving the client.

Again, these relationships, if they exist, should be completely transparent to the health care provider. If you don’t know, ask. If you are concerned, work with companies that are manufacturer or vendor agnostic and do not receive any type of remuneration based on equipment or services selected. The consultant cannot offer unbiased input on equipment or services that they receive consideration for. 

It all comes down to who they are working for. Follow the money. Be independent in your choices.

This is not legal advice, but an attempt to spotlight practices that exist and make the reader aware of them. As I said before, motive drives outcomes. Independence is a structural fact that makes deliverables trustworthy, unbiased, and valuable.

Thanks again for reading these posts. I hope you find value in them. Until next time, be well and continue to think strategically about your medical equipment. 

If this was helpful, please comment on LinkedIn or at info@medicalequipmentconsultants.com.