Lexology August 22, 2023
Hospitals play a vital role in ensuring the well-being of communities by recruiting and employing skilled physicians. However, physician recruitment in compliance with the Stark Law can be a complex task for hospital administrators, especially as hospitals and medical practices face an average 7.6% annual physician turnover rate.[1]
The Stark Law, which was enacted to prevent potential conflicts of interest and ensure the integrity of physician referrals, prohibits physicians from referring patients for designated health services to entities in which they have a financial interest unless an exception applies. At face value, physician recruitment arrangements present potential Stark Law violations if hospitals expect referrals from physicians or hope to gain financial benefits from relationships with the physicians.
An important Stark...
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