It is unprofessional for a practitioner of the healing arts to refer a patient to an unaffiliated health care facility in which the practitioner, the practitioner’s immediate family, or a corporation or limited liability company owned in whole or in part by the practitioner has a substantial financial interest without disclosing the general nature of this interest to the patient, the patient’s parent or guardian, at the time of the referral. As used in this section, a substantial financial interest is an ownership interest of twentyfive percent or more, a direct creditor’s interest in twentyfive percent or more of the facility’s debt, or a direct lessor’s interest in twentyfive percent of more of a lease to the facility. Immediate family means the spouse and children of the practitioner. Such conduct constitutes grounds for discipline by the practitioner’s appropriate licensing board.

Terms Used In South Dakota Codified Laws 36-2-19

  • Children: includes children by birth and by adoption. See South Dakota Codified Laws 2-14-2
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC

Source: SL 1994, ch 290, § 2.