What is the primary purpose of the Stark Law?

The primary purpose of the Stark Law is to prevent self-referral by physicians. This law, formally known as the Physician Self-Referral Law, prohibits physicians from making referrals for certain healthcare services to entities with which they have a financial relationship unless specific exceptions apply. The intent is to eliminate conflicts of interest that could compromise patient care and lead to unnecessary services or increased healthcare costs.

Self-referral can incentivize healthcare providers to direct patients to facilities or services that may not be in the best interest of the patient, driven instead by financial gain. By instituting strict regulations around this practice, the Stark Law aims to promote ethical behavior among healthcare providers, ensuring that patient care decisions are made based on patient needs rather than financial incentives.

Other options, while relevant to various aspects of healthcare, do not align with the primary objective of the Stark Law. For instance, regulating healthcare service pricing and managing patient insurance claims involve different legislative frameworks. Similarly, promoting healthcare provider competition focuses on market dynamics rather than the specific legal restrictions dealt with by the Stark Law.