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Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. It is View Live Demo. WhatsApp Developer. Related Articles. Leave a Reply Cancel reply Your email address will not be published. WhatsApp us. In , Stark introduced an 'Ethics in Patient Referrals Act' bill concerning physician self-referrals. Physician self-referral is the practice of a physician referring a patient to a medical facility in which the physician has a financial interest, be it ownership, investment, or a structured compensation arrangement.
Critics argue that this practice is an inherent conflict of interest, because the physician benefits from the physician's own referral. They suggest that such arrangements may encourage overutilization of services, in turn driving up health care costs. In addition, they believe that it would create a captive referral system, which limits competition by other providers.
Those who defend the practice contend that these problems are not widespread. They argue that physicians who own, invest in, or operate medical facilities are responding to a need for medical services which would otherwise not be met, particularly in medically under-served areas. In addition, it is often the case that physician owned entities present a lower-cost alternative to the facilities that are located at hospitals.
This is due mostly to higher overhead costs that hospitals must pass down to their services. Multiple federal entities oversee enforcement of Stark Law. In recent years, enforcement of Stark Law has become increasingly aggressive, largely as a result of the Patient Protection and Affordable Care Act and its amendments to the False Claims Act. On June 9, , the Office of Inspector General issued a fraud alert targeting physician compensation arrangements with hospitals and health systems.
Contracts between physicians and hospitals must fit within the seven safe harbors for Stark Law in order to fully alleviate violation risk: the contract's duration must be at least a year; in writing and signed by both parties; specify aggregate payment which is set in advance; payment is reasonable and fair market value; payment must not relate to volume or value of business; the exact services to be performed must be outlined; and be commercially reasonable.
Healthcare experts agree that information technology is necessary to streamline hospital processes, including those relating to compliance and Stark Law.
Certain electronic health record companies help healthcare systems collect, organize, and store data. Multiple technology solutions exist that specifically automate physician time logging and eliminates Stark Law violation risk. The Stark law may impede certain pay for performance value-based arrangements, which led to discussions around reform as of
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