Physician Self-Referral Final Rule Summary

On November 20, 2020, the CMS placed on public display a final rule to update regulations implementing section 1877 of the Social Security Act (the physician self-referral law). The final rule was published in the Federal Register on December 2, 2020. CMS finalizes exceptions for certain value-based compensation arrangements among physicians, providers of services and suppliers. The final rule also creates new exceptions for compensation arrangements for limited remuneration for physicians and for donations of cybersecurity technology and related services. CMS modifies the exception for electronic health record items and services, and it makes a number of clarifications and modifications to existing exceptions and terminology. It also provides guidance to physicians, providers and suppliers. The final rule is generally effective January 19, 2021. However, changes made to the regulations for group practice productivity bonuses and profit sharing are effective January 1, 2022.