Corporate Compliance

Tip: Charitable donations and Stark

Compliance Monitor, November 9, 2005

The Stark regulations provide that "[b]ona fide charitable donations" made by a physician or immediate family member to an entity do not give rise to a financial relationship under the Stark Law if three conditions are satisfied:

1. The charitable donation is made to an organization exempt from taxation under the Internal Revenue Code (or a supporting organization).

2. The donation is neither solicited nor made in a manner that takes into account the volume or value of referrals or other business generated between the physician and the entity.

3. The arrangement does not violate the federal healthcare program anti-kickback statue or any federal or state law or regulation governing billing or claims submission.

The above tip is an excerpt from the book "The Stark Law: A User's Guide to Achieving Compliance," Copyright 2005 by HCPro, Inc. This book is a reader-friendly, one-stop guide to this complex law.

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