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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118200
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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With medicare stark 2 law, Can you make a referring physician

Customer Question

With medicare stark 2 law, Can you make a referring physician as your healthcare company's board of director with monthly fix salary with out violating the stark 2 law?Thanks
Submitted: 4 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 4 years ago.
Under Stark II, “financial relationship” is defined as an ownership or investment interest in, or a compensation arrangement with, an entity providing designated health services and includes certain indirect financial relationships. There is an exception in Stark II for personal services compensation arrangement, but this is for medical services actually performed by the doctor, not for sitting on the company's board of directors when he refers patients to that company. The doctor may be made medical director of the healthcare company, but again he is performing a personal service by being the medical director for the healthcare company for which he is being compensated and even in that case, he could no longer refer patients from his practice to the healthcare company. Any financial arrangement with a referring doctor in a facility that gives them a financial interest in the healthcare facility/company would be against the terms of Stark II.



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