tci Part B Insider - 2005 Issue 31

COMPLIANCE: If The Stock Can't Go Up, It Can't Corrupt, CMS Says

Non-profit physician group's stock plan wins CMS blessingStock plans without financial benefits may succeed in avoiding legal scrutiny under federal self-referral laws, judging from one advisory opinion from the Centers for Medicare & Medicaid Services. A non-profit group of 700 physicians asked CMS whether its stock plan could be considered a financial relationship. Various laws, including the Stark self-referral law, restrict physicians' referrals and Medicare claims when the physicians have a financial relationship with providers they do business with.The group allows doctors to become shareholders after practicing for two years. Each  shareholder can buy one share for...

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