02/21/2014    

HEALTHCARE NEWS

Beware of Schemes to Circumvent Stark Law

 

The Stark Law Statute defines a “circumvention scheme” as an arrangement or scheme (such as a cross-referral arrangement) that the physician or entity knows or should know has a principal purpose of assuring referrals by the physician to a particular entity which, if the physician directly made referrals to such entity, would violate the Stark Law, and is subject to a civil money penalty of not more than $100,000 for each such arrangement or scheme.

 

It is the fundamental nature of the scheme, not clever semantics or “layering” of an arrangement which counts. In sum, if you are presented with an opportunity to earn passive income through the investment in an ancillary service provider, seek the help of an experienced healthcare lawyer. Circumvention schemes, no matter how cleverly structured, can be very risky, and the consequences devastating.

 

Source: Martin Merritt, Physicians Practice [2/9/14]