The Stark laws (1989 and 1993) ban physicians from referring patients to facilities in which the physician has a financial interest, such as a specialty hospital, radiation lab, or clinical lab. The Stark laws address
A) the problem of adverse selection.
B) the high standards imposed on the agency relationship between physician and patient.
C) moral hazard on the part of doctors.
D) induced demand by physicians.
E) unethical behavior by patients.
Correct Answer:
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