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Name, Image, and Likeness Agreements in Healthcare

Client Alert

Have you worked hard to cultivate your brand as a healthcare provider? If so, executing a Name, Image, and Likeness (“NIL”) agreement may be of interest to you. NIL agreements are contracts that allow an individual to profit from their name, image, and likeness. Specifically, these agreements protect an individual’s brand by defining how others can utilize their name, image, and likeness in advertisements, sponsorships, and endorsements, and the compensation the individual will receive as a result. NIL agreements are typically used in the context of athletics, such as enabling student-athletes to profit from their personal brand. However, NIL agreements have recently proved to be useful in other areas. For example, some healthcare providers have begun to utilize NIL agreements to promote the brand they have created through their healthcare practice.  Most recently, we have seen the most healthcare NIL activity with longevity and wellness providers, as well as orthopedics.  

Depending on who wishes to contract with a provider for NIL rights, there can be regulatory concerns.  Remember, healthcare is one of the most regulated industries in the United States!  If there is the potential to generate referrals for services that will be paid by a government health plan, NIL agreements must comply with applicable regulations that limit when and how a healthcare provider can accept payment for certain referrals, such as the Anti-Kickback Statute and the Physician Self-Referral Law, commonly known as the Stark Law. Conversely, if there are no third-party reimbursements possible (i.e. a contract with a sporting goods store), then the regulatory landscape looks different. In addition, any anecdotal information the healthcare provider chooses to share is subject to the Health Insurance Portability and Accountability Act (“HIPAA”), meaning that all identifying patient information must be removed.  

The Federal Trade Commission (“FTC”) also has standards that healthcare providers must follow when advertising. Healthcare providers should ensure that any NIL agreements meet the FTC standard for medical advertising, and that any statements made by the healthcare provider are true, not materially misleading, and are supported with scientific evidence.       

We recommend engaging an attorney to draft or review your healthcare NIL agreement to ensure that it complies with the complex and changing regulations, and that it ultimately protects your interests.

To learn more about how healthcare NIL agreements could impact your practice, please contact BMD Member Jeana Singleton at jmsingleton@bmdllc.com or 330-253-2001.         


Multi-340B Contract Pharmacy Locations on the Brink? The Third Circuit’s Ruling Gives a Hint.

The 340B drug discount program requires pharmaceutical manufacturers to offer to sell their products at significant discounts to safety net providers called “covered entities.” In 1996, the Health Resources and Services Administration (HRSA) issued guidance authorizing covered entities to enter into a contract pharmacy arrangement with a single third-party contract pharmacy, to which the manufacturer would ship 340B medications but bill the covered entity. In 2010, HRSA issued revised guidance permitting covered entities to enter into an unlimited number of contract pharmacy arrangements.

Five Opportunities for Operations and Compliance Excellence in 2023

With the holidays behind us and the rest of the year ahead, now is the perfect time to get your operational/compliance house in order! Though your list might be a mile (or an inch) long, here are five places to start.

The Pregnant Workers Fairness Act - What Employers Need to Know

Effective June 27, 2023, the Pregnant Workers Fairness Act (PWFA) will require employers with at least 15 employees to provide reasonable accommodations for qualified employees with pregnancy-related restrictions unless doing so would impose an undue hardship on the employer.

Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”