Lexology March 12, 2025
Last month, the Centers for Medicare & Medicaid Services (“CMS”) issued a rare Stark Law Advisory Opinion, concluding that a physician-owned hospital (“Hospital”) seeking to relocate eight miles from its current location and add an emergency department would continue to satisfy the Stark Law’s Whole Hospital Exception (“Exception”). This is one of several CMS Advisory Opinions providing helpful guidance to physician-owned hospitals, but the first CMS Advisory Opinion to be issued since December 2021.
The Exception requires, among other elements, that hospitals with physician ownership or investment must have had a provider agreement in place as of December 31, 2010, and that they cannot exceed (i) the aggregate percentage of ownership held by physicians as of March 23, 2010; or...
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