Special Report: Was 2023 The Return Of The Stark Law?

McDermott Will & Emery
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The year 2023 was historic from a Stark Law enforcement perspective, as we witnessed a resurgence of False Claims Act (FCA) enforcement actions predicated on Stark Law violations. This increase was capped off in December 2023 by the largest-ever settlement predicated on alleged Stark Law violations in history.

The 2023 enforcement actions primarily implicated physician compensation arrangements implemented by health systems and hospitals. What lessons can be garnered for stakeholders in 2024 and beyond? This Special Report surveys several of the 2023 Stark Law enforcement actions and explains why, in light of recent regulatory developments, future complaints predicated on similar alleged conduct may be less likely or potentially, at least, more defensible. This Special Report then discusses key takeaways and compliance considerations gleaned from 2023 enforcement activity that may be useful to hospitals, health systems and other entities in tailoring their compliance plans. Finally, this Special Report offers several “best practice” recommendations for stakeholders to consider when developing physician compensation plans designed to expand their physician networks.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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