Parker Poe attorneys have extensive experience advising clients on compliance with the federal law prohibiting physician self-referrals, known as the Stark Law. The Stark Law generally prohibits referrals by physicians for certain “designated health services” to entities with which they have a financial relationship. The Stark Law is complex, includes a large number of exceptions, and is further explained and interpreted by several hundred pages of regulations.
Our attorneys frequently assist clients in structuring transactions to comply with the Stark Law, including advice regarding structuring of transactions to fit within the Stark Law exceptions such as the “in-office ancillary services” exception, the exception for personal services agreements, and the exception for leasing arrangements. For example:

• large medical practices must consider the Stark Law in drafting their compensation plans for physicians, since the “in-office ancillary services” exception has specific limitations applicable to physician compensation plans
• hospital recruitment agreements with physicians should be carefully reviewed for compliance with Stark Law requirements, particularly if they are three-way agreements between the hospital, a medical practice, and the recruit
• management agreements and services agreements between physicians and hospitals or other healthcare providers must be structured to comply with Stark Law exceptions, since even inadvertent violations of the Stark Law can result in substantial compliance risk

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