Which legislation prohibits a physician with a financial agreement from referring Medicare or Medicaid patients to that entity?

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The Stark Law, formally known as the Physician Self-Referral Law, is designed to prevent conflicts of interest in medical referrals. It specifically prohibits physicians from referring patients covered by Medicare or Medicaid to entities with which they have a financial relationship, if the referral is for certain designated health services. This legislation aims to ensure that medical decisions are made based on the best interest of the patient rather than financial incentives.

The focus of the Stark Law is on the referral of patients and the financial relationships that may unduly influence a physician's decision-making. It establishes strict guidelines and requires disclosure of any financial agreements to avoid the risk of overutilization of services or unnecessary procedures motivated by profit rather than patient care.

In contrast, the Anti-Kickback Statute also addresses financial arrangements in healthcare but focuses on prohibiting the exchange of payments or items of value that might influence patient referrals. The HITECH Act and HIPAA primarily concern the privacy and security of patient information rather than referral practices. Therefore, the Stark Law is the correct choice given its specific prohibition related to physician referrals in the context described.

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