Split Supreme Court Says Prohibition on Self-Dealing Doesn't Apply to Medications

A divided Pennsylvania Supreme Court ruled that the statutory prohibition on self-dealing in the Workers’ Compensation Act does not include referrals for prescription drugs and pharmaceutical services. Section 306(f.1)(3)(iii) makes it illegal for physicians to refer patients for specific services if the provider has a financial interest with the person or in the entity receiving the referral. The statute explicitly applies to lab services, rehabilitation, chiropractic treatment, radiation oncology, psychometric services, diagnostic imaging and other goods or services. The proper appli...