What practice involves the sharing of fees between physicians for patient referrals?

Fee splitting involves the practice of sharing fees between physicians for patient referrals. This occurs when a physician pays another physician a portion of their fees as a form of compensation for directing patients to them. This agreement can raise ethical concerns and may violate laws regulating medical practice, such as the Stark Law, which prohibits certain financial relationships in healthcare to prevent conflicts of interest and ensure that patient care remains the primary focus.

In contrast, co-payment refers to the fixed amount a patient pays for a healthcare service at the time of receiving care, and kickback denotes illegal payments made for referring services, typically considered more severe than fee splitting. Bundling refers to the process of grouping several related services for a single price, which is a separate concept not directly associated with the sharing of referral fees. Understanding these terms and their implications is crucial for maintaining ethical standards in medical practice.