What does the Stark Law prohibit?

The Stark Law specifically addresses the issue of self-referrals by physicians to entities in which they have a financial interest. This federal law aims to prevent conflicts of interest and ensure that medical decisions are made in the best interests of patients rather than for the financial gain of the referring physician. Under the Stark Law, a physician is prohibited from referring Medicare patients to certain healthcare entities for designated health services if the physician (or an immediate family member) has a financial relationship with that entity, unless an exception applies.

This regulation serves to promote ethical medical practices and protects patients from potential over-utilization of medical services that may arise from financial motivations. Understanding the nuances of the Stark Law is essential for healthcare professionals, particularly those involved in outpatient services, to ensure compliance and maintain the integrity of healthcare delivery.