Florida Patient Brokering Act: How to Spot and Avoid Rehab Scams

Florida's Patient Brokering Act, found in Florida Statute 817.505, makes it illegal to offer, pay, request, or receive money or other benefits in exchange for referring patients to or from a health care provider or facility.¹ The law applies to health care providers and facilities as well as other individuals involved in these arrangements.

The law is often discussed in connection with a pattern known as the "Florida Shuffle," where people seeking addiction treatment may be moved between treatment facilities or sober living homes in ways that prioritize billing over their recovery.

Knowing how patient brokering works and which red flags to watch for can help you or a loved one choose treatment that puts recovery first.

What Is the Florida Patient Brokering Act?

Florida's Patient Brokering Act makes it illegal to offer, pay, request, or receive money or other benefits in exchange for referring patients to or from a health care provider or facility.¹ In legal contexts, these payments or benefits may be referred to as remuneration, meaning something of value given or received as part of an arrangement.

The law also prohibits arrangements where fees are split in exchange for referrals. People who help, advise, or otherwise participate in these illegal arrangements can also be held responsible.¹

The law applies broadly to many types of health care providers and facilities, including substance use treatment providers licensed in Florida.¹ This means addiction treatment providers are subject to the same rules against paying or receiving kickbacks for patient referrals. Florida has also taken enforcement action in patient brokering cases involving addiction treatment facilities and sober living homes.²

What Is the “Florida Shuffle”?

The “Florida Shuffle” isn't a term found in Florida's patient brokering law. It's commonly used to describe a pattern in which people seeking addiction treatment are repeatedly moved between treatment centers, sober homes, and other services so providers or brokers can continue billing insurance, rather than because the moves reflect the person's treatment needs. The term has been used in congressional discussions of patient brokering and addiction treatment fraud.

Common Patient Brokering Schemes in Sober Living Homes and Treatment Facilities

Florida law prohibits several forms of payment tied to patient referrals, including commissions, benefits, bonuses, rebates, kickbacks, bribes, and split-fee arrangements. These payments may be made in cash or other forms and can be paid directly or indirectly.¹

For example, in 2019, Florida's Attorney General announced charges against a South Florida sober living home and treatment facility owner accused of directing residents' urine samples to an out-of-state laboratory in exchange for more than $1 million in kickbacks.²

The case shows how a legitimate part of addiction treatment, such as drug testing, can be misused as part of a kickback scheme when referrals are driven by payments rather than a person's treatment needs.

This type of arrangement isn't limited to lab testing. Referral fees in addiction treatment can involve sober living homes, treatment centers, or other health care providers and facilities.

One of the main concerns is whether someone is being paid or receiving another benefit in exchange for a patient referral, rather than the referral being based on the person's treatment needs.

Penalties for Violating Florida Statute 817.505

Violating Florida's Patient Brokering Act is a third-degree felony and carries a fine of $50,000. Penalties increase when the prohibited conduct involves more patients. Conduct involving 10 to 19 patients is a second-degree felony with a fine of $100,000, while conduct involving 20 or more patients is a first-degree felony with a fine of $500,000.¹

Criminal charges aren't the only possible consequence. Florida's Attorney General or the state attorney for the judicial circuit where the violation occurred can take legal action to stop the prohibited conduct. The party bringing the action may also recover reasonable expenses, including investigative costs, court costs, attorney's fees, and other related expenses.¹

How to Avoid Rehab Scams in Florida

Florida's Patient Brokering Act can help you recognize questionable referral practices when choosing a treatment center or sober living home. In general, be cautious when someone offers or receives money or other benefits in exchange for referring you to a particular provider or facility.¹

Here are a few practical ways to protect yourself:

• Ask how referrals are handled. You can ask whether a broker, call center, sober living home, treatment center, or other party receives money or another benefit for referring you to the facility. Florida law generally prohibits payments or benefits used to induce or reward patient referrals, although the law includes some exceptions.¹
• Ask questions about financial incentives. Be cautious when someone offers free travel, waived costs, gifts, or other benefits to encourage you to enroll in a particular program. These offers aren't automatically illegal, but it's reasonable to ask who is paying, why the benefit is being offered, and whether there are any conditions attached.¹
• Ask about referral and payment practices. Understanding a provider's payment practices can help you identify arrangements that deserve a closer look. Ask whether anyone involved in recommending the program receives compensation or another financial benefit connected to your enrollment.
• Check licensing and accreditation. Confirm that the treatment provider has the appropriate Florida license. You can also ask whether the facility is accredited by an independent organization, such as The Joint Commission or the Commission on Accreditation of Rehabilitation Facilities (CARF). Florida DCF recognizes both organizations as accrediting agencies for substance use disorder providers.
• Check sober living home certification. If you're considering a sober living home, ask whether it's one of Florida's FARR-certified recovery residences. The Florida Association of Recovery Residences (FARR) is approved by Florida's Department of Children and Families as a credentialing entity for recovery homes.³
• Pay attention to unclear answers. Vague or evasive answers about costs, staff credentials, licensing, or referral arrangements are a reason to keep asking questions and consider other options.

Our guide to common addiction treatment center scams covers more signs to watch for when evaluating treatment options. Before reaching out to a facility, you can also review these essential questions to ask a rehab center so you know what information to request and can compare your options.

How to Report Suspected Patient Brokering or Rehab Fraud

Where you report suspected patient brokering or rehab fraud may depend on the type of conduct involved.

For suspected Medicaid fraud by a health care provider, you can contact the Florida Attorney General's Medicaid Fraud Control Unit at 1-866-966-7226. The unit investigates and prosecutes criminal and civil fraud involving providers that improperly bill Florida's Medicaid program.⁴

You can also report suspected Medicaid fraud to Florida's Agency for Health Care Administration (AHCA) at 1-888-419-3456 or through its online Medicaid fraud complaint form. AHCA also accepts complaints about licensed and unlicensed health care facilities at the same phone number.⁵

Before making a report, gather as much information as you can, such as the name of the person or facility involved, relevant dates, and a description of what happened. Providing these details can help investigators evaluate the complaint.

Related Florida Laws and Protections for Addiction and Mental Health Treatment

Florida has several laws and protections that may come into play when someone is seeking addiction or mental health treatment. These resources can help you understand your options and what protections may apply:

• Baker Act in Florida: Learn how Florida's law for involuntary mental health examinations works, including who can initiate one and what happens afterward.

Find Ethical Addiction Treatment in Florida

Ethical addiction treatment starts with a provider who's transparent about how they operate, including how they're paid and who refers people to them. Florida's Patient Brokering Act exists to make sure treatment decisions are based on what actually helps you or a loved one, not on who profits from the referral.¹

If you're ready to start looking, you can find addiction treatment centers in Florida at Recovery.com, where every listed provider has been reviewed against Recovery.com's criteria.

Choosing the right care takes time, and that's okay. Asking questions, checking credentials, and trusting your instincts are all part of protecting yourself and the people you love.

Disclaimer: Recovery.com does not provide legal advice. The information in this article is for general educational purposes only and should not be considered a substitute for advice from a qualified legal professional. Laws and regulations can change and may vary by state, jurisdiction, and individual circumstances. If you have questions about your rights, responsibilities, or a specific legal situation, consider speaking with a qualified attorney or other appropriate professional.