A Stark Change: New Regs Will Require Restructuring

Law360, New York (September 18, 2008, 12:00 AM EDT) -- During the past few years, the Centers for Medicare and Medicaid Services ("CMS") has suggested on several occasions that it might revise the Stark regulations to close perceived "loopholes" that permit allegedly abusive financial relationships between hospitals and physicians.

On Aug. 19, 2008, CMS finally took that step. See 73 Fed. Reg. 48434, 48688-48752 (Aug. 19, 2008) (the "August 2008 Rule"). By making four key regulatory changes, CMS has created a new Stark framework for hospital-physician transactions that will require the restructuring of many existing arrangements...
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