What is the primary purpose of implementing Stark Law?

The primary purpose of implementing Stark Law is to prevent conflicts of interest in healthcare. Stark Law, formally known as the Physician Self-Referral Law, was enacted to prohibit physicians from referring patients to facilities in which they have a financial interest. This is crucial in ensuring that medical decisions are made based on the best interests of patients rather than financial incentives that might benefit the physician. By restricting self-referrals, Stark Law aims to eliminate any potential for abuse and maintain the integrity of medical practices.

This approach helps to safeguard against situations where a healthcare provider might be tempted to refer patients to a facility simply because it is financially advantageous, rather than considering the most suitable treatment options for the patient. Thus, the implementation of Stark Law plays a fundamental role in promoting transparency and building trust in the healthcare system.