Stark Law is a legislation that is named after Pete Stark, a United States Congressman who sponsored the initial bill on three different provisions. Generally, this legislation is also known as the physician self-referral law as it emanates from Section 1877 of the Social Security Act (the Act). The law is an amendment to the Social Security Act that forbids physicians involved in a self-referral when referring patients to seek for certain services elsewhere. Self-referral by physicians can be described as the practice of these health professionals to refer patients to a medical facility where they have investments, financial interest, structured compensation plans, and ownership.

Description and Purpose of the Law:

As an important legislation, the Stark Law is a piece of regulations that basically governs three separate provisions. The three separate provisions basically entail self-referrals, Medicare claims, and regulatory exceptions for financial relationships. Under self-referrals, the Stark Law forbids...
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