Which of the following entities is governed by Stark Law?

Stark Law specifically pertains to physician self-referral and governs the circumstances under which a physician can refer patients to entities in which they have a financial interest. It is primarily focused on the services provided by specific healthcare entities that have direct interactions with physicians, to prevent conflicts of interest and ensure patient safety.

Clinical laboratories fall under the provisions of Stark Law because they often engage in arrangements with physicians for referrals. This creates a potential conflict where a physician might have a financial stake in the laboratory and could be tempted to refer patients there for unnecessary testing or services, which can lead to both financial and ethical concerns. By regulating these referrals, Stark Law aims to eliminate financial incentives that could lead to overutilization and to ensure quality of care.

In contrast, pharmacy benefit managers, health insurance companies, and long-term care facilities typically do not fall under Stark Law provisions in the same way as clinical laboratories do, as their interactions with physician referrals do not directly involve the same sort of ownership and financial interest scenarios that Stark Law addresses.