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Can physicians own private pay assisted living facilities

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and refer patients to them?...
Can physicians own private pay assisted living facilities and refer patients to them?
Submitted: 2 years ago.Category: Legal
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Answered in 10 minutes by:
9/17/2015
Lawyer: Law Educator, Esq., Attorney replied 2 years ago
Law Educator, Esq.
Category: Legal
Satisfied Customers: 119,600
Experience: JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Self referrals by a physician to a commercial enterprise owned by or in which the physician has any financial interest in would be a violation of the Stark Act and would be against the law. So, if the doctor owns any interest in the facility and is making self referrals, this needs to be reported to the US Department of Health and Human Services, which investigates violations of the Stark Act and takes any enforcement actions that are necessary. If you are the doctor thinking about doing this, do not do so, since these violations are taken seriously by the US DHHS and they do not give much slack when violations are found and they hold very rigidly to Stark.

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Customer reply replied 2 years ago
Are you saying that a physician can't refer to any commercial enterprise in which they have an interest? A hotel? A residential care facility? One that takes no government funding? All Private pay?
Lawyer: Law Educator, Esq., Attorney replied 2 years ago

Thank you for your reply.

No, a hotel is different. If the physician owns interest in any medical related facility, a lab/physical therapy/nursing home/x-ray/cat scan/MRI etc., then that type of referral violates the Stark Act. If a doctor owns a resort and refers patients to the resort, that does not violate the Stark act, it is an unrelated business to medicine.

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Lawyer: Law Educator, Esq., Attorney replied 2 years ago

It is the "self referral" that is the issue. If the doctor owns an interest in a medical related facility and other doctors refer to that facility, that is no violation.

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Law Educator, Esq.
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