Corporate Compliance

Part of Stark III will be postponed by CMS

Compliance Monitor, November 14, 2007

CMS has announced that it will wait one year to implement a provision in the final rule that prohibited physician self-referral, but only for academic medical centers, and not-for-profit integrated health systems. The provision is known as the "stand-in-the-shoes" provision because under the new rule physicians are considered to stand in the shoes of their practice according to the Modern Healthcare article.

The change would have limited an exception that has been given to indirect financial relationships between physicians the hospitals they refer patients to and what is covered by Medicare. The change came after comments arguing that it would be unfeasible to structure support payments that are common in faculty-practice plans and not-for-profit systems while staying in agreement with of other Stark exceptions according to the Modern Healthcare article.

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