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Little Health Law Primer: 5 Points of Stark Law

Video Transcript

Kevin: Hi, I’m Kevin Little. This Little Health Law video primer covers stark law in 90 seconds with five points. Stark law is complex, much more complex than you think, and it’s not possible to cover it in 90 seconds. If you believe stark law is implicated, retain a healthcare lawyer. If violated, stark law may impose severe penalties even if your heart is in the right place. Unlike stark law’s federal sister, the anti-kickback statute, stark law is a strict liability civil statute that can apply even without an improper motive.

Stark law only applies to transactions that involve a physician. Stark law is intended to prescribe certain referrals that involve physicians as defined by the statute. Stark law only applies to transactions that involve designated health services, or DHS, which refers to a list of CPT codes published each year by CMS. If DHS is not referred as part of the transaction, generally speaking, stark law will not apply. Stark law exceptions insulate a transaction from liability. If all elements of the stark law exception apply, there is no violation of stark law.

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