Stark Law updates in 2017 for physicians to know

AmSurg released a report on the Stark Law changes for physicians to know in 2017.

In the CMS Physician Fee Schedule Final Rule released in October 2016, CMS made changes to Stark Law. The final rule expanded the number of covered codes that fall under Stark Law, which prohibits referrals for some health services for Medicare beneficiaries to a facility where physicians have a financial relationship.

A Dorsey Health Law report outlines the changes, which include updates for unit-based compensation, a technical correction and new CPT codes.

In the final rule, CMS addressed unit-based compensation for renting office space or equipment, stemming from the 2015 opinion in the Council for Urological Interests v. Burwell. In the final ruling, CMS "emphasized that it does not absolutely prohibit rental charges based on the units of service furnished," according to the report, but does prohibit unit-based rental charges when the "lessor generates the payment from the lessee through a referral to the lessee for a service to be provided in the rented office space or using the rented equipment."

As a result, the per-unit rental charges are permitted if referrals aren't coming from the lessor.

The second update, a technical correction, clarifies that parties submitting requests for advisory opinions on physician referrals to CMS do so according to instructions on the CMS website. Previously, requests were submitted in writing. The website now allows for electronic submissions with an additional hard copy and payment delivered to CMS's office. Specialty hospitals, however, have separate instructions.

The code list updates for Stark Law include clinical laboratory services, radiology, radiation therapy services and supplies as well as physical and occupational therapy and outpatient speech-language pathology.

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