Wiki Pain Clinic Owned DME Company

[kristincoder]

I currently work for a pain management clinic that owns it's own DME company. When appropriate, providers write prescriptions for DME items such as tens units, back and knee braces and cervical pumps however they do sell other items such as Biofreeze, pillows and ice packs that don't require a prescription. The DME company does not service anyone else other patients then the pain management patients. They are not open to the public and don't advertise as an operating company. The DME company is not located in a separate facility, it is in a room at the pain clinic.

Does this type of business go against the Stark law? Or is this a legit way to run a DME company? I have concerns that because the pain management clinic has a financial interest in the DME company and that they are not servicing any other patients that this is not legal. Am I incorrect?

Any help or insight would be helpful!

 

[mitchellde]

The patients must be told that it is their choice of where to fulfill the prescriptions. But you have such a tight relationship there I would definitely have an attorney that is up to date with Stark have a good look at this befor going any further.