VIDEO: Updates to Stark Law may impact physician compensation formulas
KOLOA, Hawaii — In this video from Orthopedics Today Hawaii, David M. Glaser, JD, discusses how CMS updated the Stark Law and how the update may impact compensation formulas for physicians.
According to Glaser, all designated health services (DHS) must be treated the same way under the new guidance.
“Under the new approach, the first big change is that all ancillaries, or all designated health services at least, must be treated consistently, the same way,” Glaser, health care attorney at Fredrikson & Byron, told Healio.”
He added, “If you have not paid attention to your [compensation] formula in the last couple of years, you should make sure that the way you are dividing your DHS revenue is consistent with this new guidance. On a big-picture basis, you either need to be doing it on a productivity basis or as a profit share, with production-based being both superior from a business perspective and also much easier to meet than a profit share would be.”
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Glaser DM. Update on Stark Laws and no competes: Only what’s important. Presented at: Orthopedics Today Hawaii; Jan. 12-16, 2025; Koloa, Hawaii.