A Stark Change: New Regulations Will Require the Restructuring of Many Hospital-Physician Arrangements


During the past few years, the Centers for Medicare and Medicaid Services (?CMS?) has suggested on several occasions that it might revise the Stark regulations to close perceived ?loopholes? that permit allegedly abusive financial relationships between hospitals and physicians. On August 19, 2008, CMS finally took that step. See 73 Fed. Reg. 48434, 48688-48752 (August 19, 2008) (the ?August 2008 Rule?). By making four key regulatory changes, CMS has created a new Stark framework for hospital-physician transactions that will require the restructuring of many existing arrangements over the next year.

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