Two home health companies settled for $702,541 for violating the Stark Law by paying employee bonuses based on the number of patient referrals made by that employee's physician spouse.

Medical Services of America / Community Home Health Services (Miami, FL) — Stark Law Violation

Outcome: Two related home health companies settled for $702,541 for paying an employee bonuses based on patient referrals made by the employee's physician spouse, violating the Stark Law.

Medical Services of America, Inc. and Traditional Home Care, Inc. (doing business as Community Home Health Services), both operating in Miami, Florida, violated the federal Physician Self-Referral Law (Stark Law) by structuring employee compensation in a way that created an improper financial relationship tied to physician referrals.

Specifically, the companies paid bonuses to an employee based on the number of patient referrals generated by that employee's spouse — a physician. Under the Stark Law, compensation arrangements that are tied to the volume or value of physician referrals are prohibited because they create financial incentives that can distort medical decision-making in favor of the home health agency over the patient's best interest.

The U.S. Attorney's Office for the Southern District of Florida brought the enforcement action. The two companies agreed to a settlement of $702,541.20 to resolve the self-referral allegations, announced January 26, 2026.

Primary Source: Two Home Health Providers Agree to Pay $702,541 to Resolve Self-Referral Allegations