Corporate Compliance

CMS to close loopholes in Stark Law

Health Care Auditing Strategies, September 1, 2007

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Proposal targets physician-owned hospitals, ASCs On July 2, CMS proposed potentially far-reaching changes to Stark regulations as part of its annual physician fee schedule update. The new regulations are focused on physician-owned hospitals and ASCs. According to Robert Wade, Esq., an attorney with Baker and Daniel LLP, the five most significant proposed changes are the following: 1. "Under arrangement" services between hospitals and referring physicians will not be permitted when referring physicians own an interest in the entity performing the designated health service (DHS). Facilities must unwind and restructure these deals.

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