Corporate Compliance

Tip: Charitable donations and Stark

Compliance Monitor, March 21, 2007

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.

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