Question: I overheard one of our nonphysician practitioners (NPPs) tell a coder that someone at the practice might have violated the Stark Laws. What are the Stark Laws?
Tennessee 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 Laws specifically:
- Prohibit 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.
- Prohibit 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.
- 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,” according to CMS.
CMS lists the following items or services as DHS, and thus subject to the Stark Laws:
- Clinical laboratory services
- Physical therapy services
- Occupational therapy services
- Outpatient speech-language pathology services
- Radiology and certain other imaging services
- Radiation therapy services and supplies
- Durable medical equipment and supplies
- Parenteral and enteral nutrients, equipment, and supplies
- Prosthetics, orthotics, and prosthetic devices and supplies
- Home health services
- Outpatient prescription drugs
- Inpatient and outpatient hospital services.
For an otolaryngology practice, the audiology and allergy departments providing diagnostic testing could fall under the Stark Laws.
Learn more: For a complete rundown on the Stark Laws, go to: http://starklaw.org/stark_guidelines.htm.