                                 CODE OF VIRGINIA

MEDICAL REFERRAL FOR PROFIT (§ 18.2-502)

a. No person, firm, partnership, association or corporation, or agent or
employee thereof, shall for profit engage in any business which in whole or in
part includes the referral or recommendation of persons to a physician,
hospital, health related facility, or dispensary for any form of medical care or
treatment of any ailment or physical condition unless the person is advised of
the criteria of selection of the physicians, hospitals, health-related
facilities or dispensaries considered for the referral or recommendation. The
acceptance of a fee or charge for any such referral or recommendation shall
create a presumption that the business is engaged in such service for profit. A
violation of the provisions of this section shall be punishable as a Class 1
misdemeanor.

b. Whenever there is a violation of this section, in addition to the criminal
sanctions, an application may be made by the Attorney General to the circuit
court of the city or county in which the offense occurred, to issue an
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 to the
satisfaction of the court or judge that the defendant has, in fact, violated
this section, an injunction may be issued by such court or judge enjoining and
restraining any further violation, without requiring proof that any person has,
in fact, been injured or damaged thereby. Nothing in this section shall be
construed to limit, prohibit, forbid or prevent any licensed physician or
practitioner of the healing arts in the ordinary course of his professional
practice from making referrals or recommendations to other members of such
groups, so long as no fee is received for such referral or recommendation.
			The criminal and civil provisions of this section shall not apply to any
individual association or corporation not organized or incorporated for
pecuniary profit or financial gain, or to any organization or association which
is exempt from taxation pursuant to &#xA7; 501(c) of Title 26 of the United
States Code (Int. Rev. Code of 1954).

c. Nothing in this section shall be construed to authorize any division of fees
prohibited by &#xA7; 54.1-2962 or any remuneration for referral prohibited by
federal law or regulation.

HISTORY: Code 1950, § 18.1-417.2; 1972, c. 642; 1975, cc. 14, 15; 1986, c. 632.