Maryland enacted a self referral law in 1993 to help decrease the costs of health insurance and medical care after concerns that Maryland doctors would order unnecessary testing if they had a financial stake in ordering the testing. I think this was a problem with few doctors, but as we saw with the St. Joe’s stent debacle; it does not take many doctors to create a real problem for patients. Accordingly, Maryland-Self Referral Law prohibits any self-referral or any arrangement which has the practical effect of a self referral.
Where there is radar, there is usually a radar detector. I don’t mean that necessarily in a sinister way, but doctors are looking to make a profit like anyone else. It does not necessarily mean they plan to order unnecessary tests, but if they see a chance to make byproduct business, many doctors want to take that opportunity.
In Potomac Valley Orthopaedic Associates, et al. v. Maryland State Board, doctors appealed a ruling by the Maryland State Board of Physicians forbidding orthopedic doctors from referring patients for an MRI to a facility that is owned or leased by the orthopedic group in which the doctor holds a financial interest.