Stark Law Safe Harbor - Physician Contract Glossary

Stark Law Safe Harbor

Definition

Technically termed "exceptions" rather than "safe harbors," these are specific scenarios or structures under Stark Law in which physician referrals are allowed despite a financial relationship.

Examples in Context

“An in-office ancillary exception permits physicians to perform and bill for certain services if they follow Stark rules.”

Implications for Physicians

• You can still offer certain services or engage in specific ownership deals if you meet an exception.
• Noncompliance can expose you to penalties or repayment of claims.

Negotiation Tips

• Ensure any ownership or compensation arrangement meets an applicable Stark exception.
• Document services and terms extensively.

Red Flags and Pitfalls

• Believing an informal arrangement is sufficient; the law requires detailed paperwork.
• Failing to update agreements or policies to reflect changes in exceptions.

Related Terms

• Stark Law
• Fair Market Value

FAQs

• “Are these safe harbors or exceptions?”
  • Under Stark, they’re called exceptions.
• “What about non-Medicare patients?”
  • Stark primarily targets federal payor referrals, but state laws may also apply.
• “What documentation is required for a Stark Law Safe Harbor?”
  • Written agreements detailing services, timeframes, and payment terms are essential to compliance.
• “How can I ensure my practice meets a Stark Law exception?”
  • Engage legal counsel familiar with Stark Law to review your financial relationships and ensure compliance.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.