Court Sides With CMS Stark Regulations on Physician-Owned Under Arrangement Service Providers

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On May 24, the U.S. District Court for the District of Columbia in Council for Urological Interests v. Sebelius1 (‘‘CUI’’) sided with the Centers for Medicare & Medicaid Services in a lawsuit brought by a group of urologists and upheld CMS’s 2008 regulations that prohibited physician-owned ‘‘under arrangement’’ service providers under the Stark Law (the ‘‘2008 Rule’’).

The court also upheld a parallel part of CMS’s regulations that prohibited per-service (or ‘‘per-click’’) leases with referring physicians.

Originally published in Health Care Fraud Report on 7/24/2013.

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