Know Your Stark: A Primer on the Stark Law and How It May Impact Your Reading Agreements

Abstract

p M a [ t There is a common misconception that radiologists are not subject to the federal physician self-referral law (the “Stark law”) because, for the most part, they do not “refer” patients. This misconception stems, in part, from the fact that the Stark law exempts from its definition of “referral” a radiologist’s request for diagnostic adiologic services if such services re made pursuant to another phyician’s request for a consultation 1]. If, however, the radiologist orders a study that is not made pursuant to a consultation, the order is considered a referral for Stark law purposes if the study involves one of the Stark law’s designated health services (DHS). More commonly, though, radiologists are affected by the Stark law not because they make referrals for DHS but because they enter into business relationships with physicians or physician groups that refer patients to them. Any arrangement between a radiologist or radiology group and a referral source gives rise to a financial relationship, thus triggering the Stark law. Thus, such arrangements must be properly structured, or any referrals from the physician or physician practice owners to the radiologist or radiology group will be prohibited. The two most common types of arrangements between radiologists and referral sources that implicate the Stark law involve: