CMS Issues New Q&A That Permits Per-Service Lithotripsy Arrangements With Hospitals


On January 22, 2009, CMS issued a Q&A stating that in certain

circumstances physician-owned lithotripsy companies can continue to use a

percentage-based or per-use payment structure when providing lithotripsy

services "under arrangements" to hospitals.

CMS had previously announced in its August 19, 2008 Stark final rules that

use of per-service or percentage-based compensation would be prohibited for

equipment leases effective October 1, 2009. This Q&A clarifies that the

provision of lithotripsy services "under arrangements" to a hospital, which

includes both the provision of a technician and the lithotripsy equipment, can

continue to be treated as a service (rather than an equipment lease) and billed

on a per-service basis under the new rules. Ober|Kaler's Julie Kass and Kristin Cilento discuss the Q&A.

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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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