Self-Referral Law Violations Defense Lawyer - Oberheiden, P.C.
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Self-Referral Laws

Legal Defense for Self-Referral Law Violations

When can physicians refer patients to an entity in which he or she has a financial interest? May a physician refer patients to an X-ray facility the physician partly owns? Can surgeons make money on physical therapy referrals? When can physicians benefit from their referrals?

The answer? It depends. State laws vary in the application of referral laws. Arizona’s self-referral law applies only to medical doctors and surgeons. California’s Stark laws include all healing arts. Another common distinction is the type of service or activity performed. Montana’s self-referral law prohibits medical professionals from owning pharmacies. Montana does not, however, bar physicians from owning surgery centers, implant companies, or clinical labs.

Designated health services (DHS) include:

  • Clinical lab services,
  • Physical and occupational therapy,
  • Radiology services,
  • Durable medical equipment and supplies,
  • Orthotics and prosthetic devices and supplies,
  • Home health services,
  • Outpatient prescription drugs,
  • Inpatient and outpatient hospital services.

A “financial relationship” is a direct or indirect ownership, investment interest in, or payment arrangement with a DHS entity. A “direct” financial relationship exists if rewards pass between a referring physician and the DHS with no involvement of other persons or entities. An “indirect” financial relationship is the same, but with intervention from one or more entities. Relationships include receiving a salary, royalty, consulting fee, ownership interest, or other benefit.

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Three types of self-referral standards can be distinguished.

Category 1

No or very minor state law prohibition against physician self-referrals.
Representative States:

  • Alabama
  • Arkansas
  • Nebraska

Category 2

Some restrictions, but overall similar to federal law.
Representative States:

  • Georgia
  • Louisiana
  • Texas

Category 3

Strong restrictions.
Representative States:

  • California
  • New Jersey
  • Nevada

Expert knowledge of the subject helps both physician and business partner target states with the fewest restrictions. The attorneys of Oberheiden, P.C. advise physicians and healthcare companies across the country to find solutions to self-referral concerns.

Put our highly experienced team on your side

Dr. Nick Oberheiden
Dr. Nick Oberheiden



Lynette S. Byrd
Lynette S. Byrd

Former DOJ Trial Attorney


Brian J. Kuester
Brian J. Kuester

Former U.S. Attorney

Amanda Marshall
Amanda Marshall

Former U.S. Attorney

Local Counsel

Joe Brown
Joe Brown

Former U.S. Attorney

Local Counsel

John W. Sellers
John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara
Linda Julin McNamara

Federal Appeals Attorney

Aaron L. Wiley
Aaron L. Wiley

Former DOJ attorney

Local Counsel

Roger Bach
Roger Bach

Former Special Agent (DOJ)

Chris Quick
Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow
Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen
Ray Yuen

Former Supervisory Special Agent (FBI)

Our Proven Self-Referral Analysis Includes:

  • The exact parameters of self-referral restrictions
  • Proven loopholes without circumventing the law
  • Proper documentation to protect all parties
  • Professional disclosure protocols to facility and patients

Oberheiden, P.C. has the experience and success rate to guide you and your company through healthcare investigations. Contact us today.

Not all attorneys of Oberheiden, P.C. are licensed in California and nothing contained in here is meant to constitute the unauthorized practice of law.

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