What action should a Brightstar Care franchisee take if they are in a position to refer patients to their own agency?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are in a position to refer patients to your own Agency, then you should consult with competent legal counsel regarding the existence and applicability of these laws.
c. State Stark Laws
Several states have enacted variants of the federal Physician Self Referral Law, the so-called "Stark" law, that prohibits physicians or other practitioners from referring patients for certain designated health services to entities with which the physician or practitioner has an ownership or compensation relationship. Penalties include denial of government payment, recoupment, fines, other penalties and exclusion from government program participation. These laws may contain various exceptions to the referral prohibitions. If you are in a position to refer patients to your own Agency, then you should consult with competent legal counsel regarding the existence and applicability of these laws.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to the 2025 Brightstar Care Franchise Disclosure Document, if a franchisee is in a position to refer patients to their own Brightstar Care agency, they should seek legal counsel. This is due to the existence and applicability of laws such as state Stark laws, which are variants of the federal Physician Self Referral Law. These laws can prohibit physicians or other practitioners from referring patients for certain designated health services to entities with which they have an ownership or compensation relationship.
These laws are designed to prevent conflicts of interest and ensure that patient care decisions are based on medical need rather than financial gain. Penalties for violating these laws can be severe, including denial of government payment, recoupment of funds, fines, and exclusion from government healthcare programs like Medicare and Medicaid. The laws may have exceptions to these referral prohibitions, but navigating them requires expert legal advice.
Given the potential legal and financial ramifications, it is crucial for a Brightstar Care franchisee to consult with an attorney who specializes in healthcare law to ensure full compliance. This will help the franchisee understand the specific regulations in their state and avoid any actions that could be construed as illegal or unethical.