N.Y. Public Health Law § 4500: Legislative findings and statement of policy

§ 4500. Legislative findings and statement of policy. The security of

the health and welfare of the residents of this state requires, that the

utmost attention be given to assure that persons seeking medical care

and treatment in this state receive adequate care rendered within the

standards of ethics and public policy applicable to all practices of

medicine. Medical referral services, organized as profit making

enterprises within this state, have been found to be engaged in the

practice of medicine, have been sharing fees received for referrals with

doctors and hospitals to whom patients are referred, have been otherwise

compensating doctors and hospitals for accepting patients referred to

them, have been giving medical advice by telephone to persons seeking

referrals and have been advertising their services, all in violation of

the standards of ethics and public policy applicable to the practice of

medicine and which would be violations of standards of professional

conduct if the acts were performed by physicians. Such profit making

referral services have consistently engaged in practices inimical to the

public interest which would be prohibited to physicians and have engaged

in relationships with physicians which are in violation of the laws and

public policy of this state and which have permitted physicians to

benefit indirectly from acts and practices which would be prohibited to

them directly. It is hereby declared to be the public policy of this

state that the public health, safety and welfare of the citizens of this

state require that such profit making medical referral service

organizations be declared to be invalid and unlawful in this state.