Stark Act Law and Legal Definition

Stark Act is a piece of legislation passed by the congress to fight kickbacks to physicians for the referral of lab tests. The Act also contains exception for physician practice that directly performs its own clinical laboratory services as part of its group practice.

In Atl. Urological Assocs., P.A. v. Leavitt, 549 F. Supp. 2d 20 (D.D.C. 2008), the court observed that “Congress passed the Stark Act, 42 U.S.C.S. § 1395nn, to prohibit physicians from making referrals to, and prohibit laboratories from billing Medicare for, services ordered by physicians who have a financial interest in the laboratory.”