How does she provide this info? Website, brochure, word of mouth?
Listing on a new moms' website or print newsletter is advertising.
Passing cash for the favor of an endorsement from another provider -- sounds like a kickback.
I like the idea of a package business -- birth & bf partnerships, for ex, where caregivers are united by a common mission or philosophy. But this sounds different.
If this woman sells your service to potential clients & accepts payment from them, you are working for her (you can tell because you receive money from her). I am uncomfortable with this for several reasons. At best, you are working for her, at worst you are paying a kickback. She may offer other services at odds with your work or compromising your code of ethics. Her mission statement may be incompatible with yours. As time goes on she may add services that you don't want as bedfellows. And it will be a lot of trouble to keep up with that day to day. It's tough because if you say no, someone else will say yes -- don't look back!
Btw, if you think you smell something, you probably do!
Susan Johnson MFA, IBCLC
Salt Lake City, Utah USA
________________________________
From: "Jillian M. Malan, LLLL, IBCLC" <[log in to unmask]>
To: [log in to unmask]
Sent: Saturday, March 10, 2012 2:05 PM
Subject: Ethics, Kickbacks, and Referral Fees - OH MY! HELP
I'm a new private practice IBCLC and I just need some simple help. I've gone over the posts about WIC, formula, ethics, kickbacks, etc, etc, etc. What I thought was a straightforward business arrangement now has me scratching my head and wondering if I shouldn't be engaging...
Short version - I've been approached by a woman who provides a service to parents and parents-to-be that includes everything from completing their registry, planning a baby shower, hiring an LC/baby nurse/personal chef, etc. It's kind of like hiring a wedding planner - except she does it for parents regarding birth/babies. The client pays her an amount, she takes an amount off the top (a *finders fee*) and then she pays the provider.
So... Now I'm wondering if this is a type of kickback - that I'd be providing her a fee for sending me a client. But at the same time, I see this as akin to an advertising fee - she's advertising for me.
I want to do this to help grow my business, but I also want to make sure I'm acting withing the scope of ethical boundaries.
HELP!!!!!
Jillian Malan, LLLL, IBCLC
Michigan
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