Hospitals and health systems faced big Stark law penalties in 2023.
The most common trends in the Stark law cases of 2023 include compensation above fair market value, compensation structures that changed with referrals, and the provision of services to physicians at reduced or no cost.
The largest hospital Stark law settlement of 2023 involved Indianapolis-based Community Health Network. The nonprofit health system agreed to pay $345 million to resolve claims it paid employed physicians above fair market value and that it awarded bonuses to physicians that were tied to referrals as part of a recruitment scheme.