Stark Laws (Physician Self-Referral)

Yes, certain exceptions can apply to Stark Laws. For example, if the physician personally provides the services or is an employee of a medical group that provides the service, there may be no liability. This allows for multidisciplinary practices as long as the physician meets the definition of “physician in the group practice.”

There are also exceptions for in-office ancillary services. However, if the arrangement is not structured as a block lease, it may not qualify for the space and equipment lease exception. Additionally, there are Safe Harbor Regulations that make exceptions for investments in large publicly traded entities, rural physician practices, etc.

There are also a host of other exceptions to allow for rental of office space, employment and service arrangements with hospitals and certain other service arrangements. These arrangements must be at arms length and at fair market value.

The determination of whether or not your particular situations falls into one of these exceptions is a very complicated analysis and requires complete operational and financial disclosure. The risks of making an incorrect determination can be devastating.