The Centers for Medicare and Medicaid Services (CMS) has updated certain exceptions to the physician self-referral law (also known as the “Stark Law”) which will affect certain compensation limits.
The compensation limits for certain non-monetary compensation, medical staff incidental benefits, and limited remuneration to a physician are adjusted each calendar year. These compensation limits, according to the CMS website, “are adjusted each calendar year to the nearest whole dollar by the increase in the Consumer Price Index-Urban All Item (CPI-U) for the 12-month period ending the preceding September 30.”
Under the federal Stark Law, hospitals, physician groups, labs, and other provider entities may provide non-monetary compensation to physicians (such as entertainment or meals). For the calendar year of 2024, the non-monetary compensation limit has increased to $507 (from $489 in 2023). The non-monetary compensation must meet certain conditions. Violation may result in penalties. In some instances, it may be possible to return the excess amount.
Under the Stark Law there is also a medical staff incidental benefit exception. It may be used to cover certain incidentals the hospital provides to a member of the medical staff while that individual is on campus. It applies to items or services. It does not include cash or cash equivalents. The value of any medical staff incidental benefit is now less than $44 per occurrence (in 2023 it was less than $42). The compensation may be provided if certain conditions are met.
The limit on aggregate remuneration to a physician is also increased each year from its original $5,000 limit to adjust for inflation. For 2024 it has increased to $5,913 (from $5,702 in 2023). This limit applies to arrangements where an entity pays compensation to a physician in exchange for items or services. There are certain limitations and conditions that must be met for the exception to apply.
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