The Stark Law, a safeguard against healthcare fraud, prevents doctors from referring Medicare or Medicaid patients to specific facilities for certain services if the doctor has a financial connection to that facility. This financial connection could involve ownership, investment, or any compensation agreement. The Stark Law can be found in Section 1877 of the Social Security Act, (42 U.S.C. § 1395nn), falling under the Centers for Medicare & Medicaid Services (CMS).

The law aims to ensure referrals are based solely on a patient’s needs, not the doctor’s financial gain. It was enacted in 1990 and expanded in 1993 to cover a wider range of services (now 12 categories) and include Medicaid patients. This law is overseen by the Centers for Medicare & Medicaid Services (CMS) and can be found in the Social Security Act.