Entries Tagged 'Stark Law' ↓

It looks like Pete Stark is at it again. In a newly drafted house bill, Pete Stark (D-CA) has inserted language to eliminate the Stark Law hospital ownership exception. This new bill applies to all physician-owned hospitals, instead of just specialty hospitals.

Summary of Section 651 of the initial draft of the Children’s Health
Insurance Program (SCHIP):

Sec. 651. Limitation on exception to the prohibition on certain physician referrals to hospitals. Eliminates the whole hospital exception so that physicians cannot self refer to hospitals in which they have ownership. Applies to all hospitals - not just specialty hospitals. Grandfathers hospitals that were in operation with Medicare provider agreements as of the date of introduction of the bill. Requires grandfathered hospitals to meet standards within 18 months of enactment that include: preventing growth, requiring disclosure of ownership, limiting physician ownership to an aggregate of no more than 40% of the facility and no more than 2% individually, and disclosing to patients if they fail to have 24 hour physician coverage.

I watched a segment on 60 Minutes last night which said physicians in Cuba make about $20 a month. Sounds like Pete Stark’s dream scenario.

The phrase “Stark Law” is whispered around medical practices more than it should–and that’s dangerous for your practice. It’s a complex law, and unfortunately for you, it’s probably mentioned without the exceptions and safe harbors that make your ancillary healthcare venture legal.

Thus, when launching a new healthcare venture, consider giving your staff a presentation on Stark Law. Even better, have your attorney give the presentation, as it will give it more authority. (The cost of this presentation will be marginal if you’ve already hired an attorney to ensure Stark Law compliance.) The workshop will serve two purposes:

1. Eliminate chatter in your practice that your new venture is illegal; and
2. Educate your staff to handle questions from patients and other practitioners.

Of course, you probably do not want your staff answering such questions, but wouldn’t you rather have your staff reply “We had a Stark Law workshop” instead of “I don’t know?”

The latest copy of Headnotes, Dallas Bar Association’s monthly newspaper, arrived in my mailbox today and I was happy to see that it was focused on Health Law. Of course, no health law survey would be complete without an article trying to summarize Anti-Kickback and Stark Law.

The author, Kimberly Elting, did a fantastic job summarizing those and other connected issues. However, I think we shouldn’t summarize such terribly drafted law simply because it rewards poor drafting.

That is, any law that has an exception to the exception of the law’s main exception is poorly drafted and should be revised.

While I enjoyed the constant back-and-forth action in this year’s Fiesta Bowl, such back-and-forth is painful in reading law…and I’m a lawyer. I can only imagine how the physician wondering if he can open up a new facility feels.