Stark Law New Rules:Analyzing the Latest Changes to the Stark Law
hublerauthorThe Stark Law, also known as the Anti-Drug Abuse Act of 1986, is a United States federal law that aims to prevent potential conflicts of interest in federal healthcare programs. The law prohibits healthcare providers from accepting reimbursable charges from federal healthcare programs, such as Medicare and Medicaid, for certain "designated healthcare services" if the provider or their "immediate family members" have a financial relationship with a vendor providing such services. The Stark Law is designed to ensure that healthcare providers make medical decisions based on the best interests of patients, rather than personal gain.
Recent Changes to the Stark Law
In recent years, the Stark Law has undergone several significant changes, aimed at modernizing the law and making it more efficient. The most recent changes were implemented through the Bipartisan Budget Act of 2018 (BBA 2018), which made several modifications to the Stark Law. This article will discuss the key changes made by the BBA 2018 and their potential impact on healthcare providers and their stakeholders.
1. Expanded Definition of "Designated Healthcare Services"
One of the most significant changes made by the BBA 2018 is the expansion of the definition of "designated healthcare services." Under the previous version of the Stark Law, designated healthcare services included only certain medical services, such as inpatient hospital services, outpatient hospital services, and certain medical and surgical services. However, the BBA 2018 expanded the definition to include certain other healthcare services, such as physical and occupational therapy, podiatry services, and speech-language pathology services.
This change is intended to align the Stark Law with the Health Insurance Portability and Accountability Act (HIPAA) Rules, which also encompass these additional services. The expanded definition may affect healthcare providers' compliance with the Stark Law, as they now need to carefully review their financial relationships with vendors providing these additional services to ensure they do not violate the law.
2. New Exemption for "Minority" Owned Hospitals
The BBA 2018 also created a new exemption for minority-owned hospitals. Under the new rule, minority-owned hospitals are exempt from the Stark Law's ban on self-referral for designated healthcare services for a period of five years after the date of acquisition by a minority individual, partnership, corporation, or other legal entity. This exemption is intended to promote diversity in healthcare and help minority-owned hospitals succeed and thrive in the competitive healthcare market.
3. Modified Reporting Requirements for Certain Financial Relationships
The BBA 2018 made several modifications to the reporting requirements for certain financial relationships between healthcare providers and vendors. Under the previous version of the Stark Law, healthcare providers were required to report financial relationships with vendors providing designated healthcare services on their Forms 10-K and 20-F, as well as on their annual certifications of compliance with the Stark Law.
The BBA 2018 modified these reporting requirements, requiring healthcare providers to report financial relationships with vendors providing designated healthcare services on their Forms 8-K instead. This change is intended to make the reporting process more efficient and to reduce the administrative burden on healthcare providers.
The Stark Law has undergone significant changes in recent years, with the most recent modifications made through the BBA 2018. These changes may impact healthcare providers and their stakeholders, as they need to ensure compliance with the updated Stark Law rules. Healthcare providers should carefully review their financial relationships with vendors providing designated healthcare services to ensure they do not violate the law. Additionally, healthcare providers should be aware of the new exemption for minority-owned hospitals and the modified reporting requirements for certain financial relationships. By staying informed about the latest changes to the Stark Law, healthcare providers can ensure they are making informed decisions and providing the best possible care to their patients.