May 01, 2017

Federal Court Interprets Revised Writing Requirements to Stark Law Exceptions

Scott R. Grubman and Gregory A. Tanner, Chilivis, Cochran, Larkins & Bever, LLP, Atlanta, GA

On March 15, 2017, Chief Judge Joy Flowers Conti of the United States District Court for the Western District of Pennsylvania issued a decision in U.S. ex rel. Tullio Emanuele v. Medicor Associates Inc. et al., which contains the first judicial interpretation of recent clarifications of the Stark Law’s writing requirement issued by the Centers for Medicare & Medicaid Services (CMS) in 2015.1 In ruling on cross-motions for summary judgment, the court analyzed eight different arrangements between Medicor – a private physician practice group – and the Hamot Medical Center in order to determine whether the arrangements fell within either the personal services arrangement exception or the fair market value compensation exception to the Stark Law. 

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