Glossary Term
Stark Law
Definition
The Stark Law (also known as the Physician Self-Referral Law) is a U.S. federal law that prohibits physicians from referring patients to facilities in which they or their immediate family members have a financial interest, particularly when the referral involves Medicare or Medicaid patients. The law aims to prevent conflicts of interest that could arise from financial incentives, ensuring that medical decisions are made based on patient care rather than financial gain. Violating the Stark Law can result in significant penalties, including fines, denial of payments, and exclusion from participation in federal healthcare programs.
Relevance to the MedTech Industry
The Stark Law was put into place to protect patients from potential conflicts of interest by preventing physicians from making referrals based on financial incentives. The law ensures that healthcare decisions are made based on the best interest of the patient, rather than for personal financial gain, and seeks to maintain the integrity of the U.S. healthcare system, particularly within Medicare and Medicaid.
Additional Information & Related Terms
Related Terms
Physician Self-Referral: The practice of physicians referring patients to healthcare services in which they have a financial interest, which is regulated under the Stark Law.
Anti-Kickback Statute (AKS): A federal law that prohibits the exchange of anything of value in exchange for patient referrals to Medicare or Medicaid, which can intersect with the Stark Law.
In-office Ancillary Services: An exception in the Stark Law that allows physicians to refer patients to certain services within their own practices, such as imaging or laboratory tests, under specific conditions.
Financial Conflict of Interest (COI): A situation where a physician’s financial interests may influence their clinical decision-making, a key focus of the Stark Law.
Medicare and Medicaid: U.S. government-run programs that are impacted by the Stark Law, which governs self-referrals related to these programs.