Who does the Stark Law affect?
The Stark statute applies only to physicians who refer Medicare and Medicaid patients for designated health services to entities with which they (or an immediate family member) have a financial relationship. There are almost 20 exceptions to the Stark statute.
Why are stark laws important how do they protect patients?
The Stark Law is a healthcare fraud and abuse law that prohibits physicians from referring patients for certain designated health services paid for by Medicare to any entity in which they have a “financial relationship.” The federal government interprets the term “financial relationship” broadly to include any direct …
What are the consequences of stark violations?
What are the penalties for violating Stark? Penalties for violating Stark can be severe. They include denial of payment, refund of payment, imposition of a $15,000 per service civil monetary penalty and imposition of a $100,000 civil monetary penalty for each arrangement considered to be a circumvention scheme.
What are the exceptions to Stark Law?
For example, the following exceptions to the Stark Law require a written, signed agreement: office space and equipment rental, personal service arrangements, physician recruitment arrangements, group practice arrangements, and fair market value compensation arrangements.
Is the Stark Law effective?
The agency said, “The regulations finalized in CMS-1720-F (Medicare Program; Modernizing and Clarifying the Physician Self-Referral Regulations) are effective, except for the revisions to 42 CFR 411.352, which have the delayed effective date set forth in the final rule in order to give physician practices that qualify …
Can you go to jail for violating the Stark Law?
Two of the most important fraud laws that regulate doctors and healthcare providers are the Anti-Kickback Statute and the Physician Self Referral Law (Stark Law). Violations of these laws can result in huge whistleblower awards and sometimes prison for offenders.
What is a safe harbor under the Stark Act?
The AKS Care Coordination Arrangements safe harbor protects in-kind (nonmonetary) remuneration within compliant value-based arrangements that further patient care coordination purposes. This safe harbor requires no assumption of downside risk by parties to a value-based arrangement.
How does Stark Law affect the practice of Medicine?
While the practice is still permissible, Stark Law now insists that any medical professional who provides such a referral to a Medicare or Medicaid patient must concurrently provide written notice of that patient’s right to go elsewhere along with a list of nearby alternatives.
When did the Stark Law come into effect?
Since taking effect in 1992, the Stark Law has been increasingly used as a tool for combatting federal government health care fraud and abuse. The Stark Law, also known as the physician self-referral law, places limitations on physician referrals involving designated health services (DHS) paid by Medicare and Medicaid.
How does Stark Law affect a financial relationship?
The financial relationship in question can involve an exchange of cash, services in kind or any other item or element of value. Stark Law does give physicians a bit of wiggle room.
How does Stark Law apply to Medicare referrals?
While the practice is still permissible, Stark Law now insists that any medical professional who provides such a referral to a Medicare or Medicaid patient must concurrently provide written notice of that patient’s right to go elsewhere along with a list of nearby alternatives. Stark Law and Under-Arrangements Relationships