What does Stark Law prohibit?

Stark Law, officially known as the Physician Self-Referral Law, specifically prohibits physicians from referring Medicare and Medicaid patients to entities for designated health services (DHS) in which they or their immediate family members have a financial interest. This law aims to prevent potential conflicts of interest where a physician might be incentivized to refer patients to services that could financially benefit them, rather than based on the best interest of the patients.

The intent behind the Stark Law is to safeguard patients and the integrity of the healthcare system, ensuring that medical decisions are made primarily for the benefit of the patient rather than for personal financial gain. This law is particularly important in maintaining ethical practices within healthcare and regulating how financial relationships can influence patient care decisions.