Take Compensation Pieces Out Of Stark Law, Legal Experts Tell Senators
Legal experts and a hospital CEO agreed at a Senate Finance Committee hearing that getting rid of the compensation components of the Stark Law barring physician self-referrals – while keeping in the ownership restrictions – may be the best way to protect patients from overuse of medical services while promoting value-based payment systems.
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The US Center for Medicare and Medicaid Services launched a request seeking information from the public on how to reduce burdens of the physician self-referral “Stark Law,” which is intended to prevent physicians from enriching themselves with referrals, but has challenged health-care organizations, particularly those participating in accountable care organizations (ACOs), for several years.
AdvaMed wants more safe harbors around product warranties and rebates, while the Healthcare Leadership Council is asking for protections for health records software and manufacturer giveaways.
The Senate Finance Committee plans to debate potential reforms and exceptions to the Stark self-referral law for health-care companies and physicians on July 12 to make the statute better support alternative Medicare payment models. And the committee has released a white paper on the topic.