PROFESSIONS AND BUSINESSES Patient Self-Referral: Prohibit Referral of Patients by Health Care Providers to Entities in Which the Provider Holds an Investment Interest

The Act prohibits a health care provider from referring a patient to an entity providing health care services when the referring provider holds an investment interest in that entity. A transition period extending until July 1, 1996 is provided for those investment interests acquired prior to July 1. 1993. During this time, an otherwise prohibited referral may be made if specified disclosures are made to the patient.

After July 1, 1996, a referral is prohibited unless there is demonstrated community need for the entity and other investment and referral criteria are satisfied.