Medical Office Buildings and The Stark Law
The Stark Law (named for United States Congressman Pete Stark (D-CA) who sponsored the initial bill) originally banned self-referrals for laboratory services working within Medicare, and was later expanded to prohibit healthcare providers from submitting Medicare and Medicaid claims for patients who were referred by doctors with whom providers have a financial relationship. It also applies to property leases between healthcare providers and referring offices. Under the Stark Law, such leases must include a term of at least one year, “reasonable and necessary” space for legitimate business purposes, and rent consistent with fair market value, among other requirements. |
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