Which law prohibits physicians or their family members who own health care facilities from referring patients to those entities when Medicare or Medicaid would pay for treatment?

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The key idea is how physician self-referral is restricted when Medicare or Medicaid is involved. The law that fits this scenario prohibits physicians (and their immediate family) from referring patients to health care facilities in which they have a financial interest if the government programs would pay for the services. This focus on preventing financial incentives from driving referrals is what makes this statute unique: it targets ownership and compensation relationships that could influence patient care, with penalties that are primarily civil and designed to deter improper referrals, though related actions can carry criminal exposure in other statutes. There are safe harbors and exceptions that, if followed, allow legitimate arrangements. By comparison, the Anti-Kickback Statute covers broader bribery-style incentives and can be criminal; False Claims Act targets false claims submitted to programs like Medicare/Medicaid; HIPAA deals with privacy and security of patient information, not referrals.