The Ethics in Patient Referrals Act of 1989: an analysis of the bill and the issue.

It is inherent in the practice of medicine for physicians to refer their patients to hospitals and ancillary health care providers of all types. Suppose, however, that the referring physician owns a financial interest in the provider to which he or she refers patients? Is this practice unethical? Should it be illegal? Many people think it should--including Rep. Fortney H. "Pete" Stark of California. This article examines Rep. Stark's pending legislation to prohibit such arrangements under the Medicare program.