New Stark law regulations loom over healthcare professionals
Compliance Monitor, September 30, 2009
Significant changes to the federal Physician Self-Referral Law, or Stark Law, will take effect October 1, creating potential compliance liabilities for physicians and hospitals, reports the American Medical News (AMN).
CMS proposed the changes to the Stark Law, considered to be one of the most complex regulations in healthcare, in the 2009 IPPS final rule. CMS will eliminate:
• “Under arrangement” contracts, in which hospitals contract with physician-owned entities to provide ancillary services
• Per use or “per-click” payments for equipment and space leases
• Compensation deals based on percentage of revenue generated by space or equipment use
Unlike other liability statues, Stark law violations do not depend on a physician’s intent to defraud. “Stark is a strict-liability statute. So even if you have the most innocent of intentions, you are still subject to the grossest of penalties, as if you meant to violate the law,” said Lawrence W. Vernaglia, Esq., co-chair of Foley & Lardner LLP’s national healthcare payments, fraud and abuse, and compliance work group.
Under the new rule, CMS will consider physicians to have a direct ownership stake in the designated health services they provide, basically eradicating referrals unless they comply with Stark’s stricter ownership exceptions, reports AMN.
Related Products
-
Strategies for Health Care Compliance
News and real-life examples to increase the effectiveness of your compliance program. Strategies for Health Care Compliance...
-
Medicare Insider
Each issue of Medicare Weekly Update includes the latest CMS proposed and final rules, CMS manual revisions, and...
Most Popular
- Articles
-
- Note from Hugh
- Note from the instructor: CMS clarifies payment amount to be applied to payment caps and manual review thresholds for outpatient therapy services provided by critical access hosptials
- Steps to comply with HIPAA 2.0: Revise your policies and procedures
- Recent Recovery Auditor activity
- The week in Medicare updates
- Steps to comply with HIPAA 2.0: Revise your policies and procedures
- Citing HIPAA, CVS to end prescription reminders via mail
- ACDIS/AHIMA brief provides guidance on query best practices
- Change your EMR to prepare for ICD-10
- 2014 Hospice Proposed Rule Released
- E-mailed
-
- Note from the instructor: CMS clarifies payment amount to be applied to payment caps and manual review thresholds for outpatient therapy services provided by critical access hosptials
- Q&A: Focused professional practice evaluation (FPPE)
- Change your EMR to prepare for ICD-10
- Solidify processes to avoid HAC penalties
- Citing HIPAA, CVS to end prescription reminders via mail
- 2014 IPPS Proposed Rule: CMS focuses on quality measures, inpatient status
- 2014 Hospice Proposed Rule Released
- HCA initiative boosts flu shots among hospital workers
- Managing the precertification process
- Physician orientation: An essential retention tool
- Searched