Medical Auditing Practice Exam

What are the penalties for violation of the Stark law?

1. Program exclusion and potential fines

2. Non-monetary sanctions only

3. Mandatory training programs

4. Written warnings

The correct answer is: Program exclusion and potential fines

The penalties for violation of the Stark law can include program exclusion and monetary fines. The Stark law, also known as the Physician Self-Referral Law, prohibits physicians from referring patients to facilities in which they have a financial interest, unless a specific exception applies. Violating this law can lead to significant consequences, primarily aimed at discouraging such self-referral practices that can lead to conflicts of interest and overutilization of services. Program exclusion means that a healthcare provider found in violation of this law could be barred from participating in federal healthcare programs like Medicare and Medicaid. Additionally, monetary fines can be imposed on violators, which further emphasizes the seriousness of adhering to the rules established under the Stark law. The other options, such as non-monetary sanctions, mandatory training programs, and written warnings, do not encompass the breadth of penalties that can be incurred under the Stark law. While additional measures may exist in some regulatory contexts, the potential for exclusion from federal programs and the financial penalties form the foundation of the enforcement strategy for the Stark law violations.