The Implementation of the Federal Stark II Law

July 13, 2004
Woodbridge Hilton
120 Wood Ave., Iselin, New Jersey
Gary W. Herschman
Healthcare Financial Management Association - New Jersey Chapter

The Federal Stark II law prohibits physicians from referring Medicare patients for certain designated health services to entities in which they have an ownership or compensation relationship. It also prohibits entities (such as hospitals) from billing for services that result from a prohibited physician referral, unless the arrangement falls within one of several exceptions. Stark II imposes strict liability, which means that if an arrangement falls within the law’s prohibition and an exception is not satisfied, the law has been violated (without regard for a party’s intent). Violation of the Stark II law may expose both hospitals and the physicians involved to significant penalties. The new regulations become effective July 26, 2004.

The Healthcare Financial Management Association's New Jersey Chapter will kick off its Compliance Seminar Series with "The Implementation of the Federal Stark II Law." Gary W. Herschman, Chair of the Firm's Health and Hospital Law Practice Group, will present at this workshop.

The topics to be discussed include:

  • A brief overview of the Stark II law and its exceptions, definitions, clarifications and safe harbors
  • An in-depth discussion of the recently issued regulations amending and clarifying various provisions of Stark II, and adding new exceptions
  • A practical approach to assess whether a particular arrangement is covered by the Stark prohibition, and if so, whether it satisfies an exception
  • Practical illustrations of the effect of the Stark II law and the newly enacted Phase II regulations on typical arrangements between hospitals and physicians