A banner at the youth soccer field, a hospital name on a high school scoreboard, a practice logo on a 5K shirt, a senior center lunch series “brought to you by” a clinic: sponsorship puts a hospital or practice name in front of a community, and it sits closer to federal referral law and tax law than the marketing budget line suggests. This guide works through it from both sides. When your hospital or practice is the sponsor, the questions are who you are paying, whether they can send you patients, and what the sponsorship lets you say. When your hospital, foundation or nonprofit clinic is the one being sponsored, the question is whether a business’s payment is a sponsorship or advertising it has bought.
Two related topics have their own guides and are not repeated here. Team physician, sideline coverage, athletic trainer placement and sports physicals are in our guide to sports medicine practice marketing. Hospital-wide rules on tracking, patient stories, rankings and website notices are in our guide to hospital marketing compliance. For running health events with a church or community group as a partner, see our guide to church and community partnerships. For promotions that donate to a charity for each new patient or visit, see our charity donation promotion guide. For joint advertising between a hospital and an independent practice, see our guide to hospital and practice co-branded marketing. When a sponsorship includes a paid article about your practice, see our guide to sponsored articles and advertorials.
This is general information, not legal or tax advice. Whether a particular sponsorship fits the federal anti-kickback statute, and how a sponsorship payment is treated for tax purposes, depends on the facts, so check each arrangement with counsel and a tax adviser. State laws on referral payments, advertising and charitable solicitation are set state by state. Sources cited were checked on October 30, 2026: 42 U.S.C. 1320a-7b(b), 42 U.S.C. 1320a-7d(b), the HHS-OIG advisory opinions page, 42 U.S.C. 1395nn, 26 U.S.C. 513(i), 26 CFR 1.513-4, 16 CFR 255.0, 255.4 and 255.5, and 15 U.S.C. 45 and 52.
Start with one question: can the sponsored party send you patients?
The federal anti-kickback statute, 42 U.S.C. 1320a-7b(b), makes it a felony to knowingly and willfully offer or pay any remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce a person to refer an individual for an item or service payable in whole or in part by a federal health care program, or to arrange for or recommend purchasing or ordering such an item or service. It applies to the person who solicits or receives the payment as well as the one who makes it. Subsection (h) says a person need not have actual knowledge of the statute or specific intent to violate it.
A sponsorship payment is remuneration. Whether it raises a referral question depends on who receives it and what that party can do for you. Sorting your sponsorships into three groups makes the review manageable:
- No referral path. A city road race, an arts festival, a library reading program. The sponsored organization does not direct anyone to healthcare services. These still need honest wording and, for nonprofits, the tax review below, but the referral question is remote.
- Indirect influence. A youth sports league, a school athletic program, a senior center, a church health ministry, a parents’ group. Coaches, athletic directors, activity coordinators and volunteers can recommend where people go when they are hurt or sick. Here the terms of the deal matter.
- Direct referral sources. A physician group, a home health agency, a nursing facility, an assisted living community, a physical therapy clinic or any organization whose staff order, refer or recommend items or services billed to Medicare or Medicaid. A sponsorship of their event or their charity is a payment to a referral source and needs counsel’s review before anything is signed.
If a referring physician or a physician’s immediate family member owns or controls the sponsored organization, ask counsel about 42 U.S.C. 1395nn as well. That statute restricts a physician’s referrals for designated health services to an entity with which the physician or an immediate family member has a financial relationship, including a compensation arrangement, unless an exception applies.
Terms that turn a sponsorship into a referral arrangement
The statute asks what the payment is meant to induce. The safest sponsorship buys visibility and nothing else. Look in the sponsorship agreement, the sponsor packet and any side emails for terms such as these:
- Any promise, written or spoken, that the organization will send, steer or recommend patients, members, athletes or residents to you.
- A coach handout, a registration form, an injury protocol or a resident handbook that names your practice as where people must or should go, rather than listing it as one option.
- A payment amount tied to the number of patients, physicals, visits or referrals that come from the organization.
- Renewal or a higher payment tied to how much business the organization generated last season.
- Free services, staff, equipment or space for the organization folded into the sponsorship.
- Access to the organization’s member, family or resident contact lists for your own marketing.
A higher-than-market payment to an organization whose staff can recommend you is the pattern to avoid. Keep the payment consistent with what the visibility is worth to any sponsor, document what you receive for it, and keep your marketing team, not your referral development staff, as the owner of the relationship. For the wider rules on paying anyone in connection with referrals, see our guide to patient and physician referrals.
OIG advisory opinions: useful, but binding only on the requester
The HHS Office of Inspector General issues advisory opinions on whether a specific proposed arrangement would draw sanctions under the anti-kickback statute. Under 42 U.S.C. 1320a-7d(b)(4), each advisory opinion is binding as to the Secretary and the party or parties requesting it, and the failure to seek an opinion may not be introduced into evidence to prove intent to violate the statute.
Two practical points follow. First, an opinion issued to another hospital or practice about its own sponsorship tells you how OIG reasoned on those facts, not that your arrangement is protected. Second, if a sponsorship involves a direct referral source and counsel sees real uncertainty, the advisory opinion process exists for exactly that. The opinions are published on the OIG advisory opinions page; read any you rely on in full, including the facts the opinion depended on.
“Official healthcare provider” and similar wording
Sponsorship packages for teams, leagues and events offer titles: official healthcare provider, official sports medicine partner, preferred hospital. Federal advertising law covers what those titles say to the public. 15 U.S.C. 45 prohibits unfair or deceptive acts or practices, and 15 U.S.C. 52 prohibits false advertisements likely to induce the purchase of services.
The FTC Endorsement Guides explain why a title can be a problem. Under 16 CFR 255.0(b), an endorsement is any advertising message that consumers are likely to believe reflects the opinions, beliefs, findings or experiences of a party other than the sponsoring advertiser, and the name or seal of an organization can be an endorsement. Under 16 CFR 255.5(a), when a connection between the endorser and the seller might materially affect the weight or credibility of the endorsement and is not reasonably expected by the audience, the connection must be disclosed clearly and conspicuously, and material connections can include monetary payment. Under 16 CFR 255.4(a), an organization’s endorsement must be reached by a process sufficient to ensure that it fairly reflects the collective judgment of the organization.
Put plainly: “Official healthcare provider of [League name]” can read as the league’s judgment that you are the best choice for its players, when the title was bought. Wording that names the relationship avoids that impression. “Proud sponsor of [League name]” or “[Practice name] is a paid sponsor of the [League name] season” says what happened. If the organization did run a selection process, for example a request for proposals scored on clinical criteria, say what it was rather than leaving the title to imply it. Avoid “recommended by”, “chosen by” or “trusted by” unless that is literally true and the payment is disclosed alongside it.
The same title also matters to the athletes and families. A title that suggests injured players are expected to come to you is a referral message as well as an advertising claim, so treat it under both sections above. Patients choose their own provider, and the materials should say so.
Naming rights for buildings, fields and programs
Naming a stadium, a field, a school gym, a community room or an annual event after a hospital or practice is a form of sponsorship too. Run it through the same tests:
- Who is paid. A city, a school district, a private team owner, a nonprofit, a physician-owned entity. The referral analysis above depends on the answer.
- What comes with the name. Signage and an acknowledgment are one thing. Exclusive access for your clinicians, a requirement that the venue refer injuries to you, a first-aid room staffed by your employees, or free services for the owner change the arrangement and its review.
- How long, and how it ends. A multi-year naming deal can outlast a marketing plan. Agree in writing what happens to signage and digital references if the deal ends or if your organization changes its name or ownership.
- What the name implies. “[Hospital name] Field” says who paid. “[Hospital name] Sports Medicine Center” on a building you do not operate could mislead people into thinking you provide care there.
When your nonprofit is the one being sponsored
Hospitals, foundations, free clinics and health charities receive sponsorships too: a bank sponsoring a gala, a device company sponsoring a walk, a local business underwriting a health fair. For a tax-exempt organization, the question is whether the money is a qualified sponsorship payment or income from selling advertising.
Under 26 U.S.C. 513(i), soliciting and receiving qualified sponsorship payments is not an unrelated trade or business. A qualified sponsorship payment is one where the payer expects no substantial return benefit other than the use or acknowledgment of its name or logo, or product lines, in connection with the organization’s activities. The statute says that acknowledgment does not include advertising the sponsor’s products or services, including messages with qualitative or comparative language, price information or other indications of savings or value, an endorsement, or an inducement to purchase, sell or use them. It also excludes payments whose amount is contingent on attendance, broadcast ratings or other measures of public exposure.
The Treasury regulation, 26 CFR 1.513-4, fills in the detail that matters for event materials:
- Acknowledgment can include exclusive sponsorship arrangements; logos and slogans that do not contain qualitative or comparative descriptions; a list of the sponsor’s locations, telephone numbers or internet address; value-neutral descriptions of its product line or services; and its brand or trade names.
- Advertising includes messages with qualitative or comparative language, price information or other indications of savings or value, an endorsement, or an inducement to purchase. A single message that contains both advertising and an acknowledgment is advertising.
- Exclusive sponsor versus exclusive provider. Being acknowledged as the exclusive sponsor of an event generally does not, by itself, create a substantial return benefit. An arrangement that limits the sale, distribution, availability or use of competing products, services or facilities in connection with the activity generally does.
- Other benefits such as event tickets, facilities, services or a license to use the organization’s logo count as return benefits. Benefits below a small threshold set in the regulation are disregarded; above it, their full value counts. Where there is a substantial return benefit, only the part of the payment the organization can show exceeds its fair market value is a qualified sponsorship payment.
- Websites. In one of the regulation’s examples, a sponsor list on the organization’s website with each sponsor’s name and a hyperlink to its site is acknowledgment. In another, a health charity that approved an endorsement of a sponsor’s drug for the sponsor’s website was providing advertising.
This lines up with the advertising rules above. An “official provider” deal that keeps competitors out of the event is an exclusive provider arrangement for tax purposes, and a sponsor message saying the charity recommends the sponsor is both advertising under the regulation and an endorsement under the FTC Guides. Keep the tax review with your finance team and adviser, and keep sponsor copy plain: name, logo, location, website.
If a hospital foundation’s event uses patient information to invite donors, the HIPAA fundraising rules apply, and they are covered in our guide to hospital fundraising and HIPAA.
At the sponsored event itself
A sponsorship gets your name in front of people, and the booth or tent at the event is where the referral and inducement rules reach patients directly. Free screenings, raffles and giveaways at a community event are covered in our guide to health fair and screening event marketing, and the rules on gifts to Medicare and Medicaid beneficiaries are in our guide to grand openings and open houses. Photos of players or attendees used in later ads need consent, and patient stories need a HIPAA authorization; see our guide to testimonials and before and after photos. If the sponsored event is continuing education for clinicians, our guide to CME and sponsored symposia covers grant rules and independence.
Illustration: two ways to sponsor a youth league
Illustration: [Practice name] agrees to pay [League name] for the season. The agreement names the practice “Official Healthcare Provider”, the league’s injury form tells coaches to send injured players to the practice, the payment rises if more players are seen, and the practice receives the league’s family email list. The title implies a selection that did not happen, the form and the payment terms tie money to patient flow, and the list sends families’ contact details to a sponsor.
Illustration: [Clinic name] pays [League name] a flat sponsorship fee consistent with what other local sponsors pay. The banner and the league website read “Season sponsor: [Clinic name]” with the clinic’s logo, address and website. The league’s injury form says to seek care from a provider of the family’s choice and lists emergency numbers. No contact lists change hands, the clinic’s marketing team manages the deal, and counsel reviewed it because coaches can recommend care.
Checklist
- Sort each sponsorship by referral path: none, indirect or direct referral source.
- Send any sponsorship of a direct referral source, or of an organization owned by a referring physician or family member, to counsel before signing.
- Keep the payment flat and consistent with the visibility you receive; no amounts tied to visits, referrals or volume.
- Remove any wording in forms, handouts or protocols that directs people to your practice instead of listing it as an option.
- Do not accept member, family or resident contact lists as part of a sponsorship.
- Replace “official provider”, “chosen by” or “recommended by” with wording that names the paid relationship, unless a real selection process happened and the payment is disclosed.
- For naming rights, write down who is paid, what comes with the name, how it ends and what the name implies about where you provide care.
- As a nonprofit receiving sponsorship, keep acknowledgments to name, logo, location, website and value-neutral descriptions, and flag exclusive provider terms and contingent payments to your tax adviser.
- Treat OIG advisory opinions as reasoning on other parties’ facts, not protection for your own arrangement.
How we help
We build websites, local search, Google Ads and AI front desk tools for independent practices and health businesses. For sponsorships, that means sponsor pages and event pages with plain relationship wording, ad copy that does not overstate a title, and booking flows that let people choose care without a sponsor list behind them. We do not structure sponsorship deals or decide whether they fit the anti-kickback statute; your counsel and tax adviser do. Our tools are built with HIPAA in mind. We confirm in writing what a BAA covers before any patient information flows through a tool, and if it is not covered, we do not route patient information through it. We are not a healthcare provider and we do not give legal or tax advice. We do not sell lead lists and we do not pay for referrals. For the wider rules, see our healthcare marketing rules hub.
Can a hospital or practice sponsor a local sports team?
Yes, sponsorship is lawful in itself. The federal anti-kickback statute becomes a concern when a payment is meant to induce referrals for services billed to federal health care programs. A flat fee for visibility, with no steering of players to the sponsor and no payment tied to visits, keeps the arrangement on the visibility side. Have counsel review deals with organizations whose staff can recommend care.
Is calling ourselves the official healthcare provider of a team allowed?
The title can imply that the team chose you on merit. Under the FTC Endorsement Guides, an organization’s name can be an endorsement, and a paid connection that the audience would not expect must be disclosed clearly. Wording such as proud sponsor or paid sponsor describes the relationship accurately.
Does an OIG advisory opinion about another hospital’s sponsorship protect us?
No. Under federal law, an advisory opinion is binding only as to the Secretary and the parties who requested it. Another party’s opinion shows how OIG reasoned on those facts and can inform counsel’s review of yours.
Our foundation gets sponsors for its gala. What can we say about them?
Under the federal tax rules for qualified sponsorship payments, acknowledgment can include the sponsor’s name, logo, locations, phone numbers, website and value-neutral descriptions of its services. Qualitative or comparative language, prices, endorsements and calls to buy are advertising. Check the treatment of any payment with your tax adviser.
Can a sponsor be the only company of its kind at our event?
The Treasury regulation separates the two. Being acknowledged as the exclusive sponsor generally does not create a substantial return benefit by itself. An arrangement that limits competing products, services or facilities at the event, an exclusive provider arrangement, generally does.
Can we pay more for a sponsorship if the league sends us more players?
That is the term to avoid. A payment that rises with the number of patients or visits from the sponsored organization ties money to referrals, which is what the anti-kickback statute addresses. Keep sponsorship fees flat and consistent with the visibility you receive.
Sources
- 42 U.S.C. 1320a-7b: Criminal penalties for acts involving Federal health care programs
- 42 U.S.C. 1320a-7d: Guidance regarding application of health care fraud and abuse sanctions
- HHS-OIG: Advisory opinions
- 42 U.S.C. 1395nn: Limitation on certain physician referrals
- 26 U.S.C. 513: Unrelated trade or business
- 26 CFR 1.513-4: Certain sponsorship payments
- 16 CFR 255.0: Purpose and definitions
- 16 CFR 255.4: Endorsements by organizations
- 16 CFR 255.5: Disclosure of material connections
- 15 U.S.C. 45: Unfair methods of competition and unfair or deceptive acts or practices
- 15 U.S.C. 52: Dissemination of false advertisements
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