Stark Law

Handling Whistleblower Cases Nationwide from Newport News, Virginia

Florida Hospital Must Pay for “Reprehensible” Record Destruction in Stark Case

A Florida federal judge ordered sanctions against Halifax Hospital Medical Center for destroying evidence requested as part of a False Claims Act suit. The suit (United States ex rel v. Halifax Hospital Medical Center, et al., No. 09-cv-1002 (M.D. Fla) led to an $85 million settlement agreement in March, with a second phase of the same suit set for trial in July. The hospital must now pay the price its non-compliance in the suit.

What is the Stark Law?

What is the Stark Law?

Congress enacted the Stark Law as part of the Omnibus Budget Reconciliation Act of 1989. The Stark Law, 42 USC Section 1395nn, also referred to as the Physician Self–Referral Law, has certain prohibitions when a physician or member of his or her immediate family has a direct or indirect financial arrangement or relationship with an entity:

(1) First, the physician may not make a referral to an entity that provides certain designated health services covered by the Medicare program or any other federal heathcare payor program; and