Can physicians be excluded from Medicare? When should a health practitioner make a referral? The Stark law prohibits a physician ’s referral for certain designated healthcare services (DHS) to an entity if the physician (or a member of the physician ’s immediate family) has a financial relationship with the entity , unless the referral is protected by one or more exceptions provided in the law. The Stark law provides that if (1) a physician (or an immediate family member of a physician ) has a “financial relationship” with an entity , the physician may not make a referral to the entity for the furnishing of designated health services (DHS) for which payment may be made under Medicare or Medicai and (2) the entity may not present (or cause to be presented) a claim to the federal health care program or bill to any individual or entity for DHS furnished pursuant to a prohibited referral. Hospitals use various methods to ensure that physicians refer patients to its own entities , including non-compete agreements that prohibit doctors from practicing medicine in a set geographic area.
Any physician or other entity that enters into an arrangement or scheme (such as a cross-referral arrangement ) which the physician or entity knows or should know has a principal purpose of assuring referrals by the physician to a particular entity which, if the physician directly made referrals to such entity , would be in violation of this section, shall be subject to a civil money penalty of not more than $ 100for each such arrangement or scheme. In the act of medical practice , referral is the transfer of a patient’s care from one physician or clinician to another. It involves one physician recognizing that a patient under his care needs some expertise or skills that can be found in another physician.
Responses to frequently asked questions related to the physician self- referral law and the CMS Voluntary Self- Referral Disclosure Protocol are provided below in downloadable PDF documents. It is important to remember that the provided are specific to the frequently asked question presented and do not necessarily apply to different fact patterns or questions. In its simplest terms, the Stark Law prohibits physicians from referring their patients to entities in which the physicians (or their immediate families) have an ownership or other financial interest.
What Is the Stark Law? Referrals by a physician to an entity with whom the physician (or an immediate family member of the physician ) has a compensation arrangement that does not satisfy the writing or signature requirement(s) of an applicable exception but satisfies each other requirement of the applicable exception, unless such requirement is waived under one or more of the blanket waivers. Among other things, the eight standards require that no more than percent of the investment interests of the entity may be held by investors who are in a position to make or influence referrals to, furnish items or services to, or otherwise generate business for the entity except if the entity is located in a medically underserved area, in which case percent of the investment interest. Prohibition on referrals.
Except as provided in this subpart, a physician who has a direct or indirect financial relationship with an entity , or who has an immediate family member who has a direct or indirect financial relationship with the entity , may not make a referral to that entity for the furnishing of DHS for which payment otherwise may be made under Medicare. The physician is allowed to establish staff privileges at any hospital(s), federally qualified health center(s), or rural health clinic(s) and to refer business to any other entities (except as referrals may be restricted under an employment arrangement or services arrangement that complies with § 4154(d)(4)). Although physician self - referral is regulated at the federal level through the Stark law, its application is limited only to Medicaid and Medicare referrals. The presumption also applies to immediate family members of the referring doctor. State law restrictions on self- referral can, and often do, apply to physician self- referral arrangements regardless of payment source, including state Medicaid programs.
Physicians risk significant fines and penalties by billing Medicare or Medicaid for DME. Was enacted to deal with physician self- referrals B. Expanded STARK II and prohibits billing by a laboratory for services provided pursuant to illegal referrals C. The physician self- referral law prohibits a physician from making Medicare or Medicaid patient referrals for certain designated health services (DHS) to an entity that physician (or the physician ’s immediate family member) has a financial relationship with, unless an applicable exception applies. The enumerated blanket waivers issued by CMS allow physicians , hospitals, physician.
The Stark Law prohibits a physician from referring patients for certain “designated health services” that are reimbursable by Medicare to any entity with which the physician has a financial relationship, unless an exception to the statute applies. Physician ownership of, and compensation from, entities to which they make referrals is a practice which has received marked attention only in the past years. New trends in the way health care is delivered in the United States have created a market and impetus for investment in for-profit health care. As physicians have become investors or.
Under these new rules, where one entity performs a service that is billed by another entity , both entities are considered DHS entities with respect to that service. Under the Final Rule, for example, referring physicians of a physician -hospital joint venture entity that furnish CT angiography to a hospital pursuant to an under arrangements contract are prohibited from referring patients to the. The Stark law prohibits a physician from making referrals for designated health services (“DHS”) to an “ entity ” with which the physician (or an immediate family member) has a financial relationship and prohibits the entity from billing Medicare for the DHS, unless an applicable exception applies. The teaching physician may not refer to a student’s documentation of physical examination findings or medical decision making in his or her personal note. A physician filed a whistle-blower lawsuit against Boston-based Steward Health Care, alleging the health system put significant personal pressure on him and other physicians to refer patients only.
However, manufacturers may constitute tainted investors in certain situations ( e.g. , when they can influence referrals or furnish items or services to the investment entity ). According to a report in the Annals of Family Medicine, percent of physicians receive new patients through doctor referrals yearly. And although independent physicians aim for high patient retention, referrals can sometimes be ideal — or even necessary — to smoothen the overall patient experience and reduce care gaps. In the en physician practice management companies struggled to execute on their business plans and ran out of money.
Self- referral occurs when physicians refer patients for designated health services to hospitals, labs and other entities from which they or an immediate family member benefit financially. However, if a physician requires a nurse practitioner employee to refer to an entity with which the physician employer has a financial relationship, then a nurse practitioner may become involved in an activity that violates the Stark Acts. Primary care physicians (PCPs), physician groups or independent practice associations (IPAs) acting on behalf of a PCP may request that Humana transfer a patient to another PCP.
In some situations, if the PCP is with an IPA or physician group, the request can be to transfer the patient to an entirely different IPA or physician group. Generally, such requests are initiated because the patient.
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