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Medical Group Management Association

Memo outlining key revisions to the Stark Law

Advocacy Resource - December 9, 2020

Compliance Regulations

Federal Compliance

The Centers for Medicare & Medicaid Services (CMS) recently announced changes to the Physician Self-Referral Law, also known as the “Stark Law,” which are generally effective starting Jan. 19, 2021. The Stark Law prohibits physicians from making referrals to entities for certain healthcare services paid by Medicare if the physician has a financial relationship with the entity. MGMA’s Washington counsel prepared a memorandum for members outlining pertinent provisions of the final rule, including:

  • New exceptions for value-based arrangements;
  • New exceptions for cybersecurity donations and limited remuneration arrangements; 
  • Changes to profit sharing distribution rules; and
  • Updates to key requirements in existing exceptions.

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