Wiki Stark Law Question

[amanda.vanhouten85@gmail.com]

Does the Stark Law apply to contractors? Example: a provider is contracted to provide services to an outpatient office then in turn refers the clients to see therapists at that same office? And vice versa. That therapists refer clients to see that contractor for their specified services. I hope I explained that well enough

 

[thomas7331]

The Stark Law prohibits compensation based on the value of referrals if the referring entity has a financial interest, so that would apply here, but the law does allow an exception for a 'bona fide employment' relationship with the physician. So in this example, as long as the contracted physician is being compensated at a fair market value for services provided, and there is no financial incentive or inducement tied to the volume of the referrals of patients to the clinic, then the relationship may be compliant. The best practice would be to have these contracts reviewed by an attorney familiar with the Stark Law to validate that they are compliant compensation arrangements.