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Stark Law is a set of United States federal laws that prohibit physician self-referral, specifically a referral by a physician of a Medicare or Medicaid patient to an entity providing designated health services (DHS) if the physician (or an immediate family member) has a financial relationship with that entity.
Under Stark, compensation paid to a physician under a medical directorship that exceeds fair market value, or for which no actual services are rendered, triggers the referral and payment prohibitions of Stark with respect to inpatient and outpatient hospital services referred by such physician.egulatory Guidance on the Application of Fair Market Value for Stark Exceptions. The Stark regulations and commentary provide insight into how CMS expects the fair market value requirements of Stark exceptions to be applied in transactions.