STARK LAWS

 STARK LAWS

 

Education,Law,Writing Stark law is a set of rules which are found in United State. It is found in Federal government. Stark law prohibits the physician self-referral for the Medicare and the Medicaid patients. The physician self-referral refers to the practice of mainly referring the patient to a medical where the patient has a financial interest. The interest can be as a result of ownership, investment or even structured compensation arrangement. Referral means ask made by a physician for an item or service and ask for the

 establishment of plan care for the physician. The Stark law was named after Pete Stark a United State Congressman who was the main sponsor of the first bill. The Congress included a provision in Omnibus Budget Reconciliation Act of 1989. The act bared self- referrals for the clinical laboratory services under Medicare program. Stark law does not prohibit the physician from earning the fee- for service. The

 penalties for the violation of the stark law include the denial of payment for DHS provided, the refund of money and payment of civil penalties which might be up to $15000 for each service. Stark law has two departments which include the department of justice and department of health and human services. The contracts between the physician and the hospitals must be within the seven safe harbors of the Stark law.