Certified in Healthcare Compliance (CHC) Practice Test 2026 – Complete Exam Prep

The Stark Law, officially known as the Physician Self-Referral Law, is intended to prevent conflicts of interest in healthcare by prohibiting physicians from referring patients to facilities in which they have financial interests. In terms of enforcement, violations of the Stark Law can lead to significant repercussions, which include various legal and financial consequences.

Delineating the consequences, the denial of payment for services provided occurs when a healthcare provider violates the Stark Law — in such cases, payments can be denied as a direct response to non-compliance. Exclusion from the Medicare Program is also a serious consequence that can occur as it serves as a deterrent against unlawful practices in healthcare settings. Fines may be imposed as a punitive measure for non-compliance and can vary based on the nature and extent of the violation.

However, incarceration is not a possible punishment for violations of the Stark Law itself. While severe infractions in healthcare can result in criminal charges under different laws, such as anti-kickback statutes or healthcare fraud provisions, the Stark Law is predominantly civil in nature. Therefore, options regarding financial penalties or administrative actions are consistent with the penalties imposed for violating the Stark Law, making deterrence through civil penalties the primary approach.