AKS Personal Services and Management Contracts Safe Harbor (42 CFR 1001.952(d))
Safe harbor for compensation to an independent contractor for personal services, with seven conditions including written agreement, fair market value, and aggregate compensation set in advance.
Primary source
42 CFR 1001.952(d) — eCFR →https://www.ecfr.gov/current/title-42/chapter-V/subchapter-B/part-1001/subpart-C/section-1001.952#p-1001.952(d)
Verified May 23, 2026 · This is the authoritative regulator URL. The summary below is a research aid; the linked source controls.
42 CFR 1001.952(d)) protects payments to an independent contractor for personal services when all seven conditions are met:
- Written agreement signed by the parties.
- Services specified: the agreement specifies the services to be provided.
- Schedule specified if the services are part-time or periodic: the agreement specifies the schedule of intervals, their precise length, and the exact charge for each.
- Term: not less than one year.
- Aggregate compensation: set in advance, consistent with fair market value, and not determined in a manner that takes into account the volume or value of any referrals or business otherwise generated between the parties for which payment may be made under federal health care programs.
- Services do not exceed those reasonably necessary to accomplish the commercially reasonable business purpose.
- Services do not involve counseling or promoting a business arrangement or other activity that violates state or federal law.
The 2020 final rule amended condition 5 to allow part-time/periodic arrangements without specifying exact schedules — aligning with the Stark personal services exception. Even with the relaxation, fair-market-value documentation remains the central evidentiary requirement.
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Related across the archive
- RegulationAnti-Kickback Safe Harbors Overview (42 CFR 1001.952)Approximately 30 safe harbors define payment and business practices that, despite generating remuneration, do not result in AKS liability when all conditions are met.
- RegulationAnti-Kickback Statute Overview (42 USC 1320a-7b(b))Criminal prohibition on knowingly and willfully soliciting, receiving, offering, or paying remuneration to induce or reward federal health care program business, with safe harbors at 42 CFR 1001.952.
- RegulationStark Personal Services Arrangements Exception (42 CFR 411.357(d))Compensation arrangement exception for personal services with conditions parallel to but separate from the AKS personal services safe harbor.
- RegulationAKS Space Rental Safe Harbor (42 CFR 1001.952(b))Safe harbor for rental payments for office space when six conditions are met, including written lease, at least one-year term, and aggregate rent set in advance at fair market value.
- RegulationAKS Value-Based Arrangement Safe Harbors (42 CFR 1001.952(ee)-(gg))Three safe harbors added in the 2020 Sprint to Coordinated Care final rule covering value-based arrangements at varying risk levels: care coordination, substantial downside risk, and full financial risk.
- ComplianceAnti-Kickback Statute: What Medical Practices Actually Need to Know (42 USC § 1320a-7b(b))The federal Anti-Kickback Statute is intent-based, criminal-grade, and the most common fraud-and-abuse theory in OIG enforcement. Here is what AKS actually prohibits, how the safe harbors function, and where practices get caught.
Last reviewed May 23, 2026 · Citation verified May 23, 2026
Research aid, not legal advice. This summary is an administrative research aid prepared by D3rx. It does not certify compliance, provide legal advice, replace counsel, or guarantee an audit outcome. For authoritative regulatory text follow the primary source link at the top of this page. The practice remains responsible for reviewing, adopting, and maintaining its compliance program.