Handling Whistleblower Cases Nationwide from Newport News, Virginia
The Stark Law was enacted as a means to keep physicians from self-referring. This means that physicians may not refer, order, or perform certain types of "Designated Health Services (DHS)" that they receive a financial benefit from.
These Designated Health Services can include:
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.
The Stark Act, 42 USC Section 1395, includes a number of exceptions to the prohibition to the ownership and compensation arrangement described in my recent post.
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