Which statement about Stark Laws is correct?

• A. The physician has no financial relationship
• B. An exception applies
• C. The patient signs consent
• D. The service is paid out-of-pocket

Answer: (B)

Stark Law focuses on self-referral and the relationship between a physician and the entity being referred to for designated health services. The law allows such referrals only if the arrangement fits one of the recognized exceptions or safe harbors. Therefore, the statement that an exception applies is the correct one, because a referral can be lawful only when it falls within a specific, approved exception.

Think of it this way: a physician can have a financial relationship or a referral, but those must meet an exception to be compliant. The other options aren’t universal requirements: patient consent does not fix a Stark Law issue, and paying out-of-pocket doesn’t automatically remove potential violations if a disallowed financial relationship is involved.