True or False: The Stark Law prohibits claims for designated health services based on tainted referrals.

Study for the HCCA Certified in Healthcare Compliance (CHC) Exam. Practice with interactive questions and detailed explanations. Get ready to excel in your field!

The statement is true because the Stark Law, also known as the Physician Self-Referral Law, is specifically designed to prevent physicians from referring patients for certain designated health services (DHS) payable by Medicare to entities with which they have a financial relationship unless an exception applies. This law aims to eliminate potential conflicts of interest that might arise when a physician refers patients to facilities where they have a financial stake, thus ensuring that medical decisions are made based on patients' best interests rather than financial incentives.

When a referral is considered "tainted"—which means it does not comply with the stipulations set forth by the Stark Law—claims for those designated health services can be deemed illegitimate or fraudulent. As a result, the Stark Law implicitly prohibits such claims. Therefore, any claims resulting from tainted referrals are disallowed under this law to maintain the integrity of healthcare services and protect patients.

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