What does Stark Law aim to prevent?

Stark Law, officially known as the Physician Self-Referral Law, is designed primarily to prevent conflicts of interest in patient referrals, particularly when physicians have a financial interest in entities to which they are referring patients for services. This law prohibits physicians from making referrals for certain designated health services payable by Medicare to entities with which they or their immediate family members have a financial relationship, unless an exception applies. The essence of the law is to ensure that patient care decisions are made based solely on the best interests of the patient, and not influenced by the potential for financial gain.

This focus on preventing conflicts of interest helps to maintain the integrity of the healthcare system, ensuring that referrals are based on medical necessity and quality of care rather than personal financial interests. While the other options mentioned, such as overbilling, underutilization, or fraudulent billing practices, are important issues in healthcare compliance, they are not the primary focus of Stark Law. Stark Law is specifically targeted at managing and mitigating the risks associated with self-referral practices.