Why were the Stark I and Stark II laws enacted?

The Stark I and Stark II laws were enacted specifically to address concerns regarding conflicts of interest in physician referrals. These laws were created to prohibit physicians from referring Medicare patients to entities with which they have a financial relationship unless certain exceptions apply. The primary aim was to combat the potential for physicians to refer patients based on their financial interests rather than the best interests of their patients. This is crucial for ensuring that medical decisions are made based on patient needs and ethical considerations, rather than financial gain, thus promoting a more equitable and just healthcare system.

In contrast, the other choices focus on different issues within healthcare. Enhancing patient privacy rights pertains to regulations like the Health Insurance Portability and Accountability Act (HIPAA), which is separate from referral practices. Regulating healthcare expenditures aligns more closely with broader healthcare reforms aimed at controlling costs but is not the direct purpose of the Stark laws. Standardizing healthcare services among providers does not directly relate to the financial incentives involved in physician referrals addressed by the Stark laws. Therefore, the focus of the Stark legislation specifically on referral practices driven by financial interests identifies why option C is the correct answer.