Corporate Compliance

CMS extends Stark regulations deadline

Compliance Monitor, March 28, 2007

CMS announced March 23 that will extend the deadline for issuing the next round of Stark regulations (Stark II, Phase III) by one year. The deadline was originally scheduled for March 26.

Changes can be expected in:

  • physician recruitment
  • indirect compensation
  • the physician hourly compensation fair market value "safe harbor"
  • These changes to regulations are also supposed to address the application of Stark to Medicaid.

    CMS said it is unable to meet the deadline "because [it] received extensive public comments requesting clarification of and revisions to [the Regulations]" and because of the need for "substantial interagency coordination between CMS, [HHS], [OIG] and the Department of Justice."

    CMS said it intends to publish the final rule (which will be called the Stark "Phase III" final rule) on or before the March 26, 2008 deadline.

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