Stark Act Phase III - Top 6 Changes

1. Personal service arrangements will now have a six-month holdover period.
2. The physician recruitment exception has substantial revisions, the most important of which is that reasonable practice restrictions can be imposed on the recruited physicians, including covenants not to compete.
3. The $329 non-monetary compensation exception now recognizes continued compliance even if gifts and benefits in excess of the limit are exceeded by no more than 50% as long as the physician repays the excess.
4. Physicians will need to "Stand in the Shoes" of their group practice.  Now, all financial arrangements between the group practice and DHS entities will need to be considered direct financial arrangements with each physician employee or owner.
5. Hospitals can sponsor one formal event (i.e., Christmas party) for their medical staff members per year without having to track expenses under the $329 non-monetary compensation exception.
6. The fair market value "safe harbor" definition has been eliminated.

For a detailed summary of the proposed changes and the impact the changes will have on providers, click here.