CMS determined that the relocated hospital would still qualify for the whole hospital exception under Stark law. According to the release, the key factor was that the hospital maintained physician ownership and a Medicare provider agreement as of Dec. 31, 2010, allowing it to retain its exemption.
CMS concluded that the hospital remained the “same hospital” despite the relocation and emergency department addition, based on factors including:
- No substantial changes to licensed beds, operating rooms and procedure rooms
- Unchanged ownership, leadership, license, Medicare provider agreement and tax identification number
- Consistent patient base, name, logo and branding
CMS has issued only 20 advisory opinions since launching the process, with the last one in December 2021. According to the release, while CMS advisory opinions apply only to the requesting party, they provide public guidance on Stark law compliance.
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