Sharpen Your Stark Law Knowledge

Learn the New Twists on Gifts & Other Things

Becky’s

Schedule

 

· Apr 9-11 AWCC Conf.

· Apr 15 CMSA Lunch Mtg

· Apr 19 ArPTA Bus. Mtg

· Apr 21 Comp Day

· Apr 23-25 HR Conf.

· Apr 28 Holiday

Rehabilitation Network of ArkansaS

Rehab Net News Update

April 1, 2008

Volume 9 Number 3

(This article was taken from an article in the 2008 Eli Rehab Report, Vol. 15, No. 3)

 

As you may be well aware, the Stark laws resurfaced in the headlines last fall with the publication of Stark III—and both therapists and their referring physicians have been scrambling to get a handle on the latest changes.

 

 

Background:  For Medicare and Medicaid cases, if a physician (or the physician’s immediate family member) has any type of financial relationship with an entity, the physician may not make a referral to that entity for a designated health service (DHS) - unless the arrangement falls under one of the Stark Law’s exceptions.  (Physical, occupational and speech therapy are all considered DHS, and physicians may self-refer to them under Stark exceptions.)

 

 

Want to Amend An Agreement?  Not so Fast!

 

If you’re forming a space or equipment lease contract with a physician you can’t afford to be wishy-washy on your financial terms.  That’s because most Stark Law exceptions require a one year term and that compensation must be “set in advance.”  Further, the Stark III require that if you wish to amend an agreement you must first terminate the existing agreement and enter in a new contract with the revised charges.  The safest bet is to wait until the contract period ends and sign a new agreement.

 

 

Non-Cash Compensation Rules Defined

 

If you are a therapist who’s used to giving gifts to a referral source, watch out.  The       “non-cash compensation arrangement” exception caps your monetary gifts at $300 per year, assuming they meet the exception’s other requirements.  The cap, however increased with inflation, Linda Baumann, Esq, with Arent Fox in Washington, DC, notes and has gone up to $339/physician/year for 2008.

 

 

Resource:  To view the official text of Stark III law released in September, see http:/a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-4252.pdf.