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Factual Background: ABC Medical Supply Company is a durable medical equipment (DME) supplier that provides various healthcare products to patients, including those covered by federal

Factual Background: ABC Medical Supply Company is a durable medical equipment (DME) supplier that provides various healthcare products to patients, including those covered by federal healthcare programs like Medicare and Medicaid.

Here are the key players: ABC Medical Supply Company: A DME supplier

Dr. Sarah Johnson: A local physician who regularly refers patients to DME suppliers for medical equipment. Of note, nearly all of Dr. Johnson's patients are retirees who rely on Medicare for their health insurance.

Mark Harbaugh: Sales Representative for ABC Medical Supply Company, responsible for establishing and maintaining relationships with healthcare providers.

Concerning Activities: Mark Harbaugh, on behalf of ABC Medical Supply Company, routinely meets with Dr. Johnson to discuss new and upcoming innovations in the DME space. Mark regularly takes Dr. Johnson out to lunch (and her entire staff). Dr. Johnson finds benefits with ABC's DME goods and regularly recommends that her patients use purchase DME goods from ABC. In some cases, Dr. Johnson recommends that patients who may not yet need any of ABC's products should visit the store to make purchases for when those patients need DME. In recognition of their solid relationship, ABC regularly invites Dr. Johnson to company-wide retreats at the Hotel Del Coronado to speak on behalf of ABC's products. As a part of this trip, Dr. Johnson's family is invited, all costs are covered by ABC, and Dr. Johnson receives a small consulting fee.

Identify at least two different potential legal issues raised by this scenario. In particular, you must: Explain what the issue is Explain what the legal rule is Explain why the issue is likely illegal under federal law.

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