18.2-502 - Medical referral for profit.
§ 18.2-502. Medical referral for profit.
(a) No person, firm, partnership, association or corporation, or agent oremployee thereof, shall for profit engage in any business which in whole orin part includes the referral or recommendation of persons to a physician,hospital, health related facility, or dispensary for any form of medical careor treatment of any ailment or physical condition unless the person isadvised of the criteria of selection of the physicians, hospitals,health-related facilities or dispensaries considered for the referral orrecommendation. The acceptance of a fee or charge for any such referral orrecommendation shall create a presumption that the business is engaged insuch service for profit. A violation of the provisions of this section shallbe punishable as a Class 1 misdemeanor.
(b) Whenever there is a violation of this section, in addition to thecriminal sanctions, an application may be made by the Attorney General to thecircuit court of the city or county in which the offense occurred, to issuean injunction, and upon notice to the defendant of not less than five days,to enjoin and restrain the continuance of such violation. If it appears tothe satisfaction of the court or judge that the defendant has, in fact,violated this section, an injunction may be issued by such court or judgeenjoining and restraining any further violation, without requiring proof thatany person has, in fact, been injured or damaged thereby. Nothing in thissection shall be construed to limit, prohibit, forbid or prevent any licensedphysician or practitioner of the healing arts in the ordinary course of hisprofessional practice from making referrals or recommendations to othermembers of such groups, so long as no fee is received for such referral orrecommendation.
The criminal and civil provisions of this section shall not apply to anyindividual association or corporation not organized or incorporated forpecuniary profit or financial gain, or to any organization or associationwhich is exempt from taxation pursuant to § 501 (c) of Title 26 of the UnitedStates Code (Int. Rev. Code of 1954).
(c) Nothing in this section shall be construed to authorize any division offees prohibited by § 54.1-2962 or any remuneration for referral prohibited byfederal law or regulation.
(Code 1950, § 18.1-417.2; 1972, c. 642; 1975, cc. 14, 15; 1986, c. 632.)