More indirect pay arrangements scrutinized in proposed Stark update: 3 details

CMS aims to refine Stark Law regulations on indirect compensation arrangements for physician referrals to services performed by immediate family members.

Law firm Ballard Spahr broke down CMS' proposed changes for JDSupra, a legal analysis publication:

1. In a 2022 proposed payment rule update released July 23, CMS added items to the indirect compensation arrangement definition that clarify compensation units as "payment for anything other than services personally performed by the physician (or immediate family member)."

2. The proposed rule update includes payment for space, equipment and services performed by a family member, or company the family member has ownership in.

3. CMS' modification would mean more arrangements between physicians and family members would be included in the indirect compensation arrangement definition than were originally covered in the 2020 final rule.

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