Search Publications:
HLA Special Alert
September 2007
Stark II, Phase III Final Regulation: Changing the Compliance Landscape
By: Julie E. Kass and William T. Mathias
The Centers for Medicare & Medicaid Services (“CMS”) continues to change the compliance landscape facing pathologists, radiologists, and other physicians as well as hospitals, laboratories, and imaging providers. On September 5, 2007, CMS published the long-awaited Phase III final regulation under the Stark physician self-referral law. See 72 Fed. Reg. 51,012 (Sept. 5, 2007). The changes are different from (although somewhat related to) the changes in the proposed 2008 Medicare Physician Fee Schedule (“MPFS”). See 72 Fed. Reg. 38,122 (July 12, 2007). While the MPFS changes were only proposed, the Phase III changes are final and become effective December 4, 2007.
The Phase III regulation contains some important changes. CMS also made statements in the preamble to the Phase III regulation that are not labeled changes, but have the practical effect of changing commonly held views of how the Stark law operates. These changes and “clarifications” will require reconsideration and possibly renegotiation of thousands of existing arrangements.
Click to continue...
