§ 37:1744 — Disclosure of financial interest by referring healthcare providers

§1744. Disclosure of financial interest by referring healthcare providers
A. For the purposes of this Section, the following terms have the following
meanings:
(1) "Board" means Louisiana State Board of Medical Examiners, Louisiana State
Board of Dentistry, Louisiana Board of Chiropractic Examiners, Louisiana State Board of
Optometry Examiners, Louisiana Physical Therapy Board, Louisiana State Board of
Examiners of Psychologists, Louisiana State Board of Nursing, Louisiana Licensed
Professional Counselors Board of Examiners, Louisiana State Board of Practical Nurse
Examiners, Louisiana Licensed Professional Counselors Board of Examiners, or Louisiana
Board of Pharmacy.
(2) "Financial interest" means a significant ownership or investment interest
established through debt, equity, or other means and held by a healthcare provider or a
member of a healthcare provider's immediate family, or any form of direct or indirect
remuneration for referral.
(3) "Healthcare provider" means a person, partnership, or corporation, licensed by
this state to provide health care or professional services as a physician, dentist, chiropractor,
podiatrist, optometrist, physical therapist, psychologist, medical psychologist, licensed
professional counselor, registered or licensed practical nurse, pharmacist, and any officer,
employee, or agent thereof acting in the course and scope of his employment.
B. No healthcare provider shall make referrals outside the same group practice as
that of the referring healthcare provider to any other healthcare provider, licensed healthcare
facility, or provider of healthcare goods and services including but not limited to providers
of clinical laboratory services, diagnostic services, medicinal suppliers, and therapeutic
services when the referring healthcare provider has a financial interest served by such
referral, unless in advance of any such referral the referring healthcare provider discloses to
the patient, in writing, the existence of such financial interest.
C.(1) It shall be a violation of this Section for any licensee to enter into any
arrangement or scheme, including cross-referral arrangements, if the licensee knows, or
should know, that he or she has a principal purpose of ensuring referrals by the licensee to
a particular entity, which referral, if made directly by the licensee, would be a violation of
this Section.
(2) Notwithstanding any other law to the contrary, any healthcare provider who
violates the provisions of this Section shall refund all such sums received in payment for the
goods and services furnished or rendered without disclosure of financial interest. Such a
refund shall be paid to the individual patient, third-party payor, or other entity who made the
payment.
(3) Each respective board shall promulgate rules and regulations for enforcement of
the provisions of this Section. Such rules and regulations shall include sanctions and
restitution provisions and shall provide that a violation of this Section constitutes grounds
for suspension or revocation of license or other credentials. Each board shall submit to the
commissioner of insurance an annual report listing the investigations undertaken pursuant
to this Section, including the number of violations and the sanctions imposed, if any.

Legislative History

Acts 1993, No. 657, §1; Acts 2003, No. 303, §1; Acts 2009, No. 251, §8, eff. Jan. 1, 2010; Acts 2018, No. 206, §3; Acts 2021, No. 238, §2.