What constitutes a violation of the Stark law?

A violation of the Stark law occurs when there is a financial relationship between a referring physician and an entity that provides designated health services, unless an exception applies. The Stark law, formally known as the Physician Self-Referral Law, specifically prohibits physicians from referring patients to entities with which they have a financial relationship for certain services covered by Medicare, unless a specific exception has been satisfied.

This law aims to mitigate conflicts of interest and ensure that medical decisions are made based on patients’ needs rather than financial incentives. In contrast, unbiased referral processes, lack of patient records, and open communication among providers do not inherently indicate a violation of the Stark law. While clinical documentation and communication are essential for high-quality patient care and compliance in healthcare, they do not directly relate to the financial relationships the Stark law seeks to regulate.