There are a number of laws in place specifically to prevent physicians from abusing the referral system for profit at the expense of their patients. From the Anti-Kickback Statute to the False Claims Act to the Physical Self-Referral Law, also known as the Stark Law, these laws trigger fines and penalties if they are violated.
Getting to know the laws, as well as their exceptions, will help all physicians to make sure they are doing the right thing, providing the best possible care to their patients, and protecting themselves at the same time.
What Is the Stark Law?
The Physician Self-Referral Law, also called the Stark Law, prohibits physicians from referring Medicaid or Medicare patients for “designated health services” at any entity in which the physician or a family member has a financial interest. “Financial interest” could include ownership or investment interest or any kind of kickback arrangement in which the physician or a family member is paid directly for the referral.
Designated healthcare services include but are not limited to services such as those provided by home healthcare organizations, inpatient and outpatient hospital services, physical therapy, imaging, prosthetic devices, and more.
What Are the Stark Law Exceptions?
There are more than 20 exceptions to the Stark Law that can protect physicians from prosecution if all the criteria are met.
Some exceptions to the Stark Law include but are not limited to the following:
- Rental of office space
- Rental of certain equipment
- Bona fide employment relationships
- Physician recruitment
- Some arrangements with hospitals
- Bona fide charitable donations made by a physician
- Some nonmonetary compensation
It is important to note that each of these and all other Stark exceptions come with a long list of caveats. There are very strict rules regarding amounts of compensation, geographic location, recruitment specifics, fair market value, and more that can impact whether or not a physician would be considered covered by the exception or not.
It is important to consult with a medical law firm like Florida Healthcare Law Firm that understands the details of the Stark Law and its exceptions. They can review your current arrangements with various entities to determine if the specifics of your situation are protected or potentially putting you at risk for litigation.
Florida Healthcare Law Firm Is Here to Help
The Stark Law is incredibly strict in that it is not required for there to be proof of intent to violate the law in order for the physician to be penalized. This means that if a violation can be proven, even if it was inadvertent, ignorance is not a legal protection.
If you have been charged with violating the Stark Law and feel that an exception applies or would like to know what your options are, contact Florida Healthcare Law Firm for information and support now.