Why The Physician Self Referral Law Or Stark Law

2460 Words10 Pages
The Center for Medicaid and Medicare Services has to be very careful in their reimbursement. They need to make sure the patient comes first in every situation. Patients also should have a say in their care. This is why the Physician Self-Referral Law or Stark Law was put into place. The Physician Self-Referral Law or Stark Law is a law that was passed to limit financial gain by physicians or their families. The Stark Law was originally enacted in 1989 and only applied to physician referrals to laboratory services. It was not until 1993 and 1994 that Congress expanded the prohibition to ten additional designated health services. Congress also applied certain aspects of the law to the Medicaid program (Stark Law, 2013). The law was passed in 1992 and was expanded in 1995 (American College of Foot and Ankle Surgeons, 2016). The Stark Law is named after the United States Congressman, Pete Stark, who initially sponsored the bill (Stark Law, 2013). The law is in place so that physicians cannot refer patients to a health service in which the physician or family member would have financial interest. The financial interest can be compensation, ownership, or investment. This law is in place for any physician who receives payment from Medicare or Medicaid (American College of Foot and Ankle Surgeons, 2016). To understand the Stark Law, it is important to understand the terms used in the law and whom they pertain to. The first key term is physician. The physician who is making a
Open Document