The Stark Law

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The Stark Law Some federal statutes address fraud in government health care programs, and many of these laws vary considerably (Krause 2004). Some of these laws specifically target health care fraud. Example of the laws that the government direct at inappropriate health care activities includes the “Medicare and Medicaid Anti-Kickback Statute and Ethics in Patient Referrals Act (EPRA).” In 1989, Congress enacted the Ethics in Patient Referrals Act. Commonly known as Stark law, Congress named it in honor of Rep. Pete Stark, a Democrat from California, and original sponsor of the bill (Sprague 2004). This law places limitations on self-referrals by physicians and prohibits physicians from referring patients to organizations in which they have vested interest for “designated health services" (DHS) for which Medicare or Medicaid may pay the bill (Staman 2010). In other words, the basic application of the Stark law forbids “physicians from referring Medicare and Medicaid patients” to hospitals, facilities, or other health care entities in which they have a financial interest (Choudhry, Choudhry, and Brennan 2005, 364). The Stark law also prohibits a medical doctor from referring Medicare and Medicaid patients to hospitals or health care entities in which his or her immediate family member has a financial relationship. In accordance with the law, self-referrals are unethical practices that involve a physicians’ referral of patients to entities in which they have a financial interest. A financial interest may arise from owning a part of or having investment in the entity. A financial interest may also occur when a physician has a “structured compensation arrangement” with a health care facility or entity (O’Sullivan 2007). ... ... middle of paper ... ...he civil False Claims Act against Medicare providers in federal courts: A content analysis based on agency theory. PhD diss., The George Washington University. Kusserow, Richard P. 1997. The Medicare Medicaid antikickback statute and the safe harbor regulations - what's next? Health Matrix: Journal of Law and Medicine 2, no. 1 (Spring): 49- (22 p). Kvale, Steinar and Svend Brinkmann. 2009. Interviews: Learning the craft of qualitative research interviewing. 2nd ed. Thousand Oaks, CA: Sage. Lagnado, Lucette. 2000a. Columbia/HCA to pay the U.S. $745 million. Wall Street Journal. May 19. Lagnado, Lucette. 2000b. HCA Unit’s Guilty pleas resolve largest Medicare criminal probe. Wall Street Journal, December 15. Lahman, Larry D. 2005. Bad mule: A primer on the Federal False Claims Act. The Oklahoma Bar Journal 76, no.12 (April): 901-907.

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