Medical Auditing Practice Exam

What is the required action for each service violation according to Stark law?

1. Immediate report to the department of health

2. Payment of fines before any service

3. Potential $15,000 CMP for each service

4. Retraining of all staff involved

The correct answer is: Potential $15,000 CMP for each service

The required action for each service violation according to Stark law includes the potential for a civil monetary penalty of $15,000 for each service that is found to violate the statute. This law prohibits physician self-referral, particularly when a physician refers a patient to a service that they have a financial interest in, which can lead to conflicts of interest and increased healthcare costs. The imposition of civil monetary penalties serves as a deterrent against such violations and emphasizes the importance of compliance with the law in healthcare practices. Violations can lead to significant financial repercussions, thereby highlighting the critical need for understanding Stark law and adhering to its provisions to avoid severe penalties. Other responses may suggest actions such as reporting to health authorities or retraining staff, but the specific consequence tied to each service violation is directly linked to the imposition of monetary penalties as stipulated by the legislation. This underscores the importance of compliance to mitigate financial liabilities.