A. Such business arrangements are very common; however, there are ethical and legal issues that must be considered. The fact that such an arrangement is common practice is recognized by the APA Ethics Committee. However, Section 2-MM of Opinions of the Ethics Committee on the Principles of Medical Ethics, With Annotations Especially Applicable to Psychiatry, states that the arrangement described above, where the psychiatrist accepts a percentage of another independent provider’s fees, "is not ethical and constitutes fee splitting. The costs of these services should be established at market value and paid per your agreement or contract."