Matt Mazurek, MD, assistant professor of anesthesiologist at the New Haven-based Yale School of Medicine, joined Becker's, to discuss the Stark law issues he's keeping an eye on.
Question: What Stark law issues are concerning at the moment? Why?
Opinions expressed by Dr. Mazurek are his own.
Dr. Matt Mazurek: In the last three years there have been several Stark law revisions, and the American Medical Association has supported these changes. For example, determining whether compensation under a specific arrangement is within fair market value is a requirement for many of the exceptions or safe harbors that may be used under the Stark law or anti-kickback statute. Understanding how FMV is defined is of utmost importance. However, for many physicians, healthcare executives and healthcare valuators, the regulations have historically generated ambiguity surrounding FMV. To minimize confusion, CMS redefined FMV in the Stark final rule to be the value in an arm’s-length transaction, consistent with the general market value of the subject transaction. The various formulas CMS now uses to determine general market value remain complex.
Physicians need to understand the importance of practicing while adhering to the new Stark law changes. The recent rules changes have increased the complexity of financial relationships between physicians and other entities. As an employee, it remains the responsibility of the physician and employer to ensure the contract is compliant. Now, more than ever, hiring legal counsel to examine contracts and other financial arrangements is a necessity to avoid potential legal and regulatory compliance violations.