§ 238-a. Prohibition of financial arrangements and referrals. 1. (a)\nA practitioner authorized to order clinical laboratory services,\npharmacy services, radiation therapy services, physical therapy services\nor x-ray or imaging services may not make a referral for such services\nto a health care provider authorized to provide such services where such\npractitioner or immediate family member of such practitioner has a\nfinancial relationship with such health care provider.\n (b) A health care provider or a referring practitioner may not present\nor cause to be presented to any individual or third party payor or other\nentity a claim, bill, or other demand for payment for clinical\nlaboratory services, pharmacy services, radiation therapy services,\nphysical therapy services or x-ray or imaging services furnished\npursuant to a referral prohibited by this subdivision.\n 2. Subdivision one of this section shall not apply in any of the\nfollowing cases:\n (a) practitioners' services - in the case of practitioners' services\nprovided personally by, or under the supervision of, another\npractitioner in the same group practice as the referring practitioner;\n (b) in-office ancillary services - in the case of health or health\nrelated items or services (i) that are furnished personally by the\nreferring practitioner, personally by a practitioner who is a member of\nthe same group practice as the referring practitioner, or personally by\nindividuals who are employed by such practitioner or group practice and\nwho are supervised by the practitioner or by another practitioner in the\ngroup practice; and in a building in which the referring practitioner,\nor another practitioner who is a member of the same group practice,\nfurnishes practitioners' services unrelated to the furnishing of such\nitems or services, or in the case of a referring practitioner who is a\nmember of a group practice, in another building which is used by the\ngroup practice for the centralized provision of such items or services\nof the group; and (ii) that are billed by the practitioner performing or\nsupervising the services, by a group practice of which such practitioner\nis a member, or by an entity that is wholly owned by such practitioner\nor such group practice;\n (c) in the case of health or health related items or services\nfurnished to subscribers of a health maintenance organization operating\npursuant to article forty-three of the insurance law or article\nforty-four of this chapter, participants in a managed care program\noperating pursuant to section three hundred sixty-four-j of the social\nservices law or persons enrolled in a prepaid health services plan\nauthorized by law;\n (d) in the case of a referral for inpatient hospital services,\nincluding services by hospital staff practitioners provided in the\nhospital;\n (e) in the case of a referral of a hospital inpatient, outpatient or\nemergency services patient for clinical laboratory services, pharmacy\nservices, radiation therapy services, physical therapy services or x-ray\nor imaging services provided by the hospital, including services by\nhospital staff practitioners provided in the hospital;\n (f) in the case of a financial relationship with a general hospital if\nthe financial relationship does not relate specifically to the provision\nof clinical laboratory services, pharmacy services, radiation therapy\nservices, physical therapy services or x-ray or imaging services for\nwhich the referral was made; and\n (g) in the case of any other financial relationship which the public\nhealth council determines and specifies in regulations, subject to\napproval by the commissioner, does not pose a substantial risk of payor\nor patient abuse in relation to patient benefits consistent, to the\nextent practicable, with financial relationships specified in\nregulations adopted pursuant to federal law applicable to reimbursement\npursuant to title XVIII of the federal social security act (med
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