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

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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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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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