CMS Changes Will Curb Profits For Pod, Condo Labs

Law360 (January 7, 2008, 12:00 AM EST) -- The dust has settled, temporarily, on the Center for Medicare and Medicaid Services’ (“CMS”) latest attempt to calibrate its approach to arrangements to share diagnostic testing equipment.

The result is that it will be much more difficult to operate a pod or condo laboratory profitably, and generally more difficult to share diagnostic equipment.

From the adoption of the Stark Law in 1992, CMS (and before it, Congress in adopting the 1992 law and the 1995 expansion) has struggled with the tension between permitting an imaging or...
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