ABSTRACT

Stark Law was created to limit self-referral and has expanded to restrict physicians and hospital practice. A physician is considered to be “employed by” or an “employee” of an entity under the usual common law rules applicable in determining the employer-employee relationship. Stark Law is achieving the goal of keeping physicians isolated and defenseless. Stark Law requires that physicians receive only fair market prices for their services, and there are severe costs associated with technical violations. The complexity of Stark Law has left hospital executives, Congress, and Centers For Medicare & Medicaid Services struggling with the boundaries of the legislation — especially as the healthcare industry replaces traditional fee-for-service medicine with value-based care. The physician who is a member of the group provides the full range of services which a physician routinely provides, including medical care, consultation, diagnosis, or treatment, through the joint use of shared office space, facilities, equipment, and personnel.