Lexology September 22, 2021
Final Changes Regarding Distribution of Profits
The Centers for Medicare & Medicaid Services (“CMS”) and Department of Health and Human Services (“HHS”) announced a Final Rule, effective January 1, 2022, modifying the requirements under the Stark Law with respect to distribution of profits among physicians in a group practice.
Under the new rule, § 411.352(i) will be modified to clarify the permissible methods for distributing profit shares derived from the referral of designated health services (“DHS”) among the physicians of a group practice (as defined under the Stark Law). Of note, this regulation would modify references to “profits” and “revenues” to more accurately be reflected by the term “overall profits,” which is defined under the rule as “the profits derived...
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