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The Stark Act, 42 U.S.C. Â§ 1395nn, is a piece of legislation that was enacted to combat kickbacks to physicians for the referral of lab tests. Elsenety v. Health Care Fin. Admin., 85 Fed. Appx. 405, 409 (6th Cir. 2003).
Some of the ideas in the bill became law as part of the Omnibus Budget Reconciliation Act of 1990. In specific, what is referred to as Stark I prohibited a physician referring a Medicare patient to a clinical laboratory if the physician or his/her family member has a financial interest in that laboratory.