A 2024 Stark law compensation update physicians need to know

ASCs, physician groups and hospitals can provide non-monetary compensation to physicians up to an amount of $507 for the calendar year 2024, according to a Dec. 27 Lexology report. 

Non-monetary payments that do not exceed $507 can be provided as long as the pay doesn't take into account the volume or value of referrals generated by the physician and is not solicited by the physician or the physician's practice.

If the physician group or ASC has accidentally provided a non-monetary compensation over the $507 limit, it will be deemed within the limit if the excess value is no more than 50% and the physician returns the excess. The return must be made in the earlier end of the calendar year when the excess compensation was received or within 180 calendar days from when it was received, according to the report. 

Additionally, a Stark law exception finalized in 2021 allows for arrangements wherein a provider pays compensation, including cash, to a physician in exchange for items provided as long as the amount is less than $5,000 a year. This exception, which does not apply to writing, signature or set-in-advance requirements, was increased to $5,913 Jan. 1. 

"Entities should review non-monetary compensation provided in 2023 to ensure that such compensation did not exceed the 2023 limit," the report said. 

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