Court Sides With CMS Stark Regulations on Physician-Owned Under Arrangement Service Providers

On May 24, the U.S. District Court for the District of Columbia in Council for Urological Interests v. Sebelius1 (‘‘CUI’’) sided with the Centers for Medicare & Medicaid Services in a lawsuit brought by a group of urologists and upheld CMS’s 2008 regulations that prohibited physician-owned ‘‘under arrangement’’ service providers under the Stark Law (the ‘‘2008 Rule’’).

The court also upheld a parallel part of CMS’s regulations that prohibited per-service (or ‘‘per-click’’) leases with referring physicians.

Originally published in Health Care Fraud Report on 7/24/2013.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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