Physicians Practice December 28, 2023
A look at the self-referral law.
The Physician Self-Referral Law aka Stark Law (“Stark I”), was first signed into law in 1989. Since then, Stark II was passed in 1993 with three phases of implementing regulations. Recently, I was asked to present on avoiding liability with a specific focus on physician contracts. Physician agreements take many forms, including physician-hospital contracts, agreements with medical device or pharmaceutical companies, office rental agreements, and physician-ownership in ambulatory surgery centers (ASCs), just to name a few.
How does one avoid liability under Stark, as well as a potential False Claims Act case? The simple answer is meet an exception “to the referral prohibition related to compensation arrangements.” (42 C.F.R. 411.357). It is important to...