Section 1-303 - Disclosure of beneficial interest(a) Except as provided in subsection (c) of this section and Title 12 of this article, a health care practitioner making a lawful referral shall disclose the existence of the beneficial interest in accordance with provisions of this section.(b) Prior to referring a patient to a health care entity in which the practitioner, the practitioners immediate family, or the practitioner in combination with the practitioners immediate family owns a beneficial interest, the health care practitioner shall: (1) Except if an oral referral is made by telephone, provide the patient with a written statement that: (i) Discloses the existence of the ownership of the beneficial interest or compensation arrangement;(ii) States that the patient may choose to obtain the health care service from another health care entity; and(iii) Requires the patient to acknowledge in writing receipt of the statement;(2) Except if an oral referral is made by telephone, insert in the medical record of the patient a copy of the written acknowledgement;(3) Place on permanent display a written notice that is in a typeface that is large enough to be easily legible to the average person from a distance of 8 feet and that is in a location that is plainly visible to the patients of the health care practitioner disclosing all of the health care entities: (i) In which the practitioner, the practitioners immediate family, or the practitioner in combination with the practitioners immediate family owns a beneficial interest; and(ii) To which the practitioner refers patients; and(4) Documents in the medical record of the patient that: (i) A valid medical need exists for the referral; and(ii) The practitioner has disclosed the existence of the beneficial interest to the patient.(c) The provisions of this section do not apply to: (1) A health care practitioner when treating a member of a health maintenance organization as defined in § 19-701 of the Health - General Article and the health care practitioner does not have a beneficial interest in the health care entity; or(2) A health care practitioner who refers a patient:(i) To another health care practitioner in the same group practice as the referring health care practitioner;(ii) For in-office ancillary services; or(iii) For health care services provided through or by a health care entity owned or controlled by a hospital.(d) A health care practitioner who fails to comply with any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.