Stark Provisions in 2009 Inpatient Prospective Payment System Rule Will Lead to Major Changes for Physician Joint Ventures


On July 31, 2008, the 2009 final Hospital Inpatient Prospective Payment System (IPPS) rules were put on display at the Federal Register and on the CMS web site. These rules will be published in the August 19, 2008 issue of

the Federal Register. In this rule, CMS finalized three provisions, which taken together will have a significant impact on the provision of designated health

services (DHS) by physician- owned entities. These provisions (i) expand the definition of DHS ?entity?; (ii) prohibit percentage- based payments for space

and equipment leases; and (iii) prohibit per-click arrangements for space and equipment leases.

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