tci Medicare Compliance & Reimbursement - 2003 Issue 14

Self-Referral: STARK LAWS COULD CAST WIDER NET

Specialty hospitals will be in for a major overhaul of how they structure deals with physicians if legislation introduced April 1 works its way through Congress. Rep. Pete Stark (D-CA) - architect of the physician self-referral laws - and Rep. Jerry Klec-zka (D-WI) crafted the Hospital Investment Act of 2003 to put restrictions on physician ownership of specialty hospitals that typically limit their services to highly profitable areas such as cardiac care and orthopedic surgery. Stark and Kleczka worry that such facilities end up bleeding much-needed revenue from full-scale hospitals without providing the range of services most communities need...

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