Top 5 Things You Need to Consider If Proposed Stark Act Changes Adopted

Here are the Top 5 things hospitals, physicians and other providers need to consider if the proposed changes to the Stark Act are made final:

1. "Under Arrangement" services between hospitals and referring physicians will not be permitted where referring physicians own an interest in the entity performing the DHS. These deals will need to be unwound and restructured.
2. Per click arrangements where referring physicians lease equipment or space to hospitals who pay per use will need to be restructured. These arrangements may need to be based on daily or hourly fair market value rates.
3. Percentage-based arrangements that apply to compensation arrangements other than revenue generated from services personally performed by a physician will need to be restructured. Providers may need to convert these arrangements into hourly compensation arrangements.
4. Providers, who become aware of "technical" Stark violations, should self-report to seek approval that the arrangement will comply with alternative criteria for Stark compliance.
5. Providers who mark up the professional component of a diagnostic service purchased, in addition to the purchase of the technical component of a diagnostic service, will be limited to the lesser of the net charge, actual charge, or fee schedule.  Many providers may determine it is better to permit the physicians who actually perform the service to bill for the service directly.
    
   For a detailed summary of the proposed changes, click here.