99MGMT Blog

The Stark Law, officially called the Physician Self-Referral Law, is a federal rule that shapes how healthcare providers handle referrals and financial relationships. It was created to prevent arrangements that might put financial interests ahead of patient care. In Texas, providers often have questions about what the law covers and how to stay aligned with it.

Each patient file you create is more than a clinical record; it’s a vault of deeply personal information. And in Texas, guarding that vault means navigating a complex web of both state and federal privacy laws.

Are your current policies airtight? Can your staff confidently respond to a records request, a data breach, or a departing physician’s transition plan? Many practices assume they’re compliant — until they discover a gap during an audit or request.

If that sounds familiar, you’re not alone. Texas laws add additional layers to HIPAA with faster turnaround times, stricter definitions, and tougher penalties. Even a small oversight can lead to costly consequences.

Referral relationships are part of everyday operations in a medical practice – but they can also create unexpected legal risk. If a physician refers patients to a facility where they have or a family member has a financial interest, that referral could violate federal law. The Physician Self-Referral Law, known as Stark Law, was created to prevent these conflicts and reduce unnecessary services billed to Medicare or Medicaid.

Let’s face it: EHR systems aren’t the shiny new toy in your office anymore — they’re the standard. 

For most healthcare practices, EHR implementation is no longer a question of “if” but “how well.” Spurred by federal incentives and evolving care standards over the past two decades, electronic health record platforms have gone from novel innovations to non-negotiable tools in modern healthcare. Today, almost every provider depends on EHR software to centralize patient data, streamline workflows, and coordinate care seamlessly.

But simply going live doesn’t guarantee success. Even well-established systems can leave teams battling workflow hiccups, security blind spots, and lingering frustration long after “implementation day” has come and gone. The real test now isn’t adoption — it’s optimization.

Leaving a comfortable medical practice can be daunting. You've built strong patient relationships and mastered the daily routine. But for some, the desire for growth and autonomy sparks the idea of opening their own practice. 

The idea of shaping your future and building something new is exciting. 

But it’s not just about finding the perfect location or setting up appointments; launching a medical practice in Texas requires thoughtful planning and navigating important challenges. From legal and financial considerations to selecting the right team and technology, there are several crucial steps to take before making the leap. 

Let’s dive into how to start a medical practice in Texas.

Trust is a big part of every patient-provider relationship. People want to know their doctors are making choices based on care – not financial ties. That’s what the Stark Law aims to support. It helps create a space where decisions are made in the patient’s best interest.

Compliance is a critical concern in the healthcare industry, where complex regulations protect patients and ensure medical decisions are based on need — not green. 

Among the most impactful are the federal Anti-Kickback Statute (AKS), federal Stark Law, and Texas’ Patient Solicitation Act. These laws shape how healthcare providers, hospitals, and organizations operate, especially for referrals and compensation arrangements.

In Texas, providers must understand federal regulations and state-specific laws like the Texas Anti-Kickback Statute. These regulations impose additional layers of oversight — and consequences — that providers may ignore at their own risk.

Imagine trusting your doctor’s recommendation for a medical service, believing it’s based solely on your health needs. Now, imagine discovering that your physician referred you not because it was the best choice, but because they had a financial stake in the facility. 

Would you feel deceived?

This is precisely the type of unethical practice that federal Stark Law regulations aim to prevent.

Running a healthcare practice comes with great responsibility – especially when protecting patient information. 

A HIPAA Security Risk Assessment helps identify potential risks before they become bigger problems, like data breaches or compliance violations that could lead to hefty fines.

Physician credentialing isn’t just a procedural necessity; it's a strategic linchpin in building a robust medical practice. 

Credentialing can be as daunting as it is critical, often mired in cumbersome processes that can sap both time and energy from your practice’s core focus — patient care. Yet, this process is crucial for your practice to ensure compliance, maintain seamless operations, and provide uninterrupted patient care.