What does the Stark Law address?

• A. Prohibits physician referrals to any entity.
• B. Prohibits physician referrals for designated health services payable by Medicare/Medicaid to entities in which the physician or family member has a financial relationship, unless an exception applies.
• C. Requires physicians to disclose all financial relationships.
• D. Allows referrals to entities owned by family members.

Answer: (B)

Stark Law focuses on physician self-referral: it prohibits referrals for designated health services that Medicare or Medicaid pays to an entity in which the physician or a family member has a financial relationship, unless a specific exception applies. This captures the idea that if a doctor stands to gain financially from directing patients to a particular business, the referral for services like labs, imaging, or certain procedures (the designated health services) could be unconstitutional unless the arrangement meets one of the law’s allowed exceptions. It’s not a blanket ban on all referrals, nor a general duty to disclose every financial tie, and ownership by family members isn’t itself permitted to override the rule—an applicable exception must be present for the referral to be allowed.