§ 20-77-804 — Limitation on acceptance of and payments for certain referrals

(a) Except as provided in subsection (b) of this section, no payment for home intravenous drug therapy services shall be made to any provider in which a physician or a physician's immediate family member has an ownership interest in the provider or in any situation where the physician receives compensation from the provider to induce referrals. (b) Exceptions: (1) Subsection (a) of this section does not apply if the ownership interest is the ownership of stock which is traded over a publicly regulated exchange and was purchased on terms generally available to the public; (2) Subsection (a) of this section does not apply if the compensation is reasonably related to items or services actually provided by the physician and does not vary in proportion to the number of referrals made by the referring physicians, but such exception does not apply to compensation provided for direct patient care services; and (3) Subsection (a) of this section is not to be construed to apply to a referring physician whose only ownership or financial relationship with the provider is as an uncompensated officer or director of the provider.

Legislative History

Acts 1993, No. 918, § 4.