CMS yesterday issued final regulations prohibiting physicians from referring Medicare patients for certain items, services, and tests provided by businesses in which they or their immediate family members have a financial interest. This regulation--the third phase of the final regulations implementing the Stark law--responds to public comments on the Phase II interim final rule published March 26, 2004, in the Federal Register. The rule does not establish any new exceptions to the self-referral prohibition, but makes certain refinements that could permit or, in some cases, require restructuring of some existing arrangements, CMS officials explained.
Among other actions, the final regulation provides enhanced flexibility in structuring nonabusive compensation arrangements, provides relief for inadvertent violations of the self-referral prohibition under certain circumstances, reduces the regulatory burden for compliance with certain exceptions, and clarifies the agency’s interpretation of existing regulations. The final rule will be published in the Sept. 5, 2007, Federal Register. Read the press release.
