What is Stark Law?

Stark Law, formally known as the Physician Self-Referral Law, is a U.S. federal law that prohibits physicians from referring patients for certain designated health services to facilities in which they or their immediate family members have a financial interest. The law aims to prevent conflicts of interest and ensure that medical decisions are made based on patient needs rather than financial incentives. Violations can result in significant penalties, including fines and exclusion from federal healthcare programs. Exceptions to Stark Law exist for specific arrangements, such as certain financial relationships that meet regulatory criteria.