Stark Law

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There is a custom called physician self-referral. This is when a physician refers a sick person to a curative facility, which he has part ownership, financial interests or venture in. It is thought to be a conflict of interest that a physician will stand to advantage from referring patients to his curative factory for condition services. This self-referral custom has a potential to be abused because the physician may over-refer patients for services that may or may not be necessary. That is why; the law was developed to preclude such self-referral practices.

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How is Stark Law

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The Stark Law was passed by the federal government to preclude physician self referral and does not allow a physician to refer Medicare or Medicaid patients to facilities that are owned by the physician or a member of the physician's immediate family, unless it is under exception.

Financial connection is the direct or indirect venture or financial interest in the firm or factory that specifically provides designated condition services. Payment arrangements also fall under this category. Therefore a physician cannot refer Medicare or Medicaid patients to a factory that he has financial interests in, otherwise payment can be withheld and not paid.

In the beginning, the law only pertained to physician referrals for clinic lab services. But as the law expanded, when the second version was developed, the Stark law became applicable to a long list of designated condition services, which comprise corporal therapy, occupational therapy, radiology, orthotics, sick person prescribe drugs and many more.

The Stark law only involves a referral for various services that is why the definition of referral must be clearly stated for all to understand. Referral is a physician's request for, certifying or recertifying a need, or ordering any designated condition service, that is reimbursable by Medicare. This also includes a request for consultation with other physician or any test, policy or medicine ordered by that other physician. Referral doesn't comprise services that are personally performed by the referring physician.

There are a few exceptions to the Stark law that fall under, physician services exception, services furnished by an society of enrollees exception, reserved, academic curative centers exception, implants furnished in an ambulatory surgical center, in-office ancillary services exemption, intra-family rural referrals, eyeglasses and caress lenses following cataract surgery, and Erythropoietin and other dialysis-related drugs exception.

The penalties for violation of the Stark law are severe and comprise denial of refund, denial of payment, exclusion from the Medicare or Medicaid programs, monetary penalties in a civil court, which can comprise fines of ,000 per service violation and 0,000 for each arrangement found to be a scheme for the purpose of ensuring physician referrals.

With the Stark Law in place, condition care practitioners must be aware of how it affects them in their billing and medicine of patients covered by Medicare and Medicaid. It is all the time best, to know and be aware of the Stark law and how it affects your practice.

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