Question: I overheard one of our nurse practitioners (NPs) say that someone at the practice might have violated the Stark Law. What is the Stark Law?
Texas Subscriber
Answer: This is a very big question. In basic terms, the Stark Laws are a set of three Medicare provisions that look to prevent physician self-referral, “or the practice of a physician referring a patient to a medical facility in which he has a financial interest, be it ownership, investment, or a structured compensation arrangement,” according to starklaw.org.
According to CMS, the Stark Law specifically:
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Prohibits a physician from referring his patients to designated health services (DHS) payable by Medicare to an entity with which the physician (or an immediate family member) has a financial relationship, unless there are exceptions.
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Prohibits the practice from “presenting or causing to be presented claims to Medicare (or billing another individual, entity, or third party payer) for those referred services,” CMS states.
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Establishes very specific exceptions and “grants the Secretary the authority to create regulatory exceptions for financial relationships that do not pose a risk of program or patient abuse,” accordingto CMS.
CMS lists the following items or services as DHS, and thus subject to the Stark Laws:
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Clinical laboratory services
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Physical therapy services
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Occupational therapy services
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Outpatient speech-language pathology services
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Radiology and certain other imaging services
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Radiation therapy services and supplies
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Durable medical equipment and supplies
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Parenteral and enteral nutrients, equipment, and supplies
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Prosthetics, orthotics, and prosthetic devices and supplies
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Home health services
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Outpatient prescription drugs
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Inpatient and outpatient hospital services.
Learn more: For a complete rundown on The Stark laws check out: http://starklaw.org/stark_guidelines.htm.