What might happen if a physician refers a patient to a service with which they have a financial relationship?

If a physician refers a patient to a service with which they have a financial relationship, they may be fined under the Stark Law. The Stark Law, also known as the Physician Self-Referral Law, is designed to prevent conflicts of interest and ensure that referrals are made based on medical necessity rather than financial gain. This law prohibits physicians from making referrals for certain health services payable by Medicare to entities with which they have a financial relationship, unless an exception applies.

Violating the Stark Law can result in significant penalties, including fines and the potential for legal action. Therefore, compliance with this law is crucial for physicians to avoid financial and legal repercussions. This legislation underscores the importance of transparency and ethical practice in medical referrals, ensuring that patient care remains the primary focus without undue influence from financial interests.