True or False: The STARK law prohibits Medicare payments for designated healthcare services referred by a physician with a financial relationship with the entity.

The statement is true. The Stark Law, formally known as the Ethics in Patient Referrals Act, specifically prohibits physicians from making referrals for certain designated health services payable by Medicare, if the physician has a financial relationship with the entity providing the services. This law is designed to prevent conflicts of interest where financial incentives could lead to unnecessary services or overutilization of healthcare resources.

Under the Stark Law, a financial relationship includes ownership interests or compensation arrangements between the referring physician and the entity. If such a relationship exists, any referral made by the physician for those designated health services is deemed noncompliant. As a result, Medicare is prohibited from making payments for the services rendered as a result of those improper referrals. This reinforces the law's intent to safeguard the integrity of medical decision-making and protect patients from potentially exploitative financial practices.