As part of this agenda, MGMA finalized comprehensive position papers outlining key issue areas, supporting data and specific advocacy priorities aimed at reducing regulatory burdens on group practices.
Here are three things to know about the organization’s stance on Stark law:
1. Since its enactment, the Stark Law has become a major regulatory burden for group practices, the association said. Its restrictions also pose challenges for independent physicians trying to coordinate care effectively.
2. MGMA’s advocacy priorities for Stark law reform include:
- Revising compensation arrangement rules: The group argues that these provisions are outdated and unnecessary in a value-based system, where overutilization is no longer a primary concern.
- Enhancing the group practice model: MGMA supports simplifying the statutory definition of a group practice and revising penalty provisions to ensure fines only apply when prohibited referrals cause demonstrable harm.
3. Although the CMS finalized updates to the Stark law in 2021 to support value-based care models, the revisions failed to clarify compliance requirements for group practices that do not fall under the value-based arrangement exception.
“Despite countless rulemakings, the complexity of the Stark law has grown to the point where it is incomprehensible to the average group practice administrator or physician,” MGMA stated. “Further, the law’s broad scope, lack of an intent requirement, and severe penalty provisions create unnecessary challenges for medical groups.”
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