The physician self-referral law, know as the “Stark Law,” was passed by Congress in 1989 and substantially amended in 1993. Health care delivery has changed dramatically since then, but this antiquated statute has not kept pace with new and innovative delivery models.
The Stark Law and its complex and voluminous regulations were designed to prevent inappropriate financial relationships that incentivize physicians to increase overall utilization (volume), use more expensive services (value), or direct a referral stream to a given provider.
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