Question

Dr. Thompson is a neurologist who provides care in Mainstreet, Indiana. She owns her own practice, but costs to maintain her MRI equipment are increasing. She is considering using space at St. Vincent Hospital and sending patients that require MRI or other imaging procedures to St. Vincent's radiology department. Her longtime friend, whom she met in medical school, is the CEO of St. Vincent's and told her she can use the space for free for a while until her practice recovers. Do you think Dr. Thompson has violated the Stark Law? Why? How would you fix this?

Answer 1

Yes Dr.Thompson has violated the stark law.According to stark law it is referred to as strict liability law because it can be violated without any intention to do so.Request by the physician for any item or service comes under this law.AS Dr.thompson is using radiology services in vincent hospital without paying rental services ,he might undergo a penalty.No billing or denial of payment is furnished in violation of law.It can result in Civil money penalties due to violation.Physicians who violate this law can be excluded from participating in the medicare and medicaid programs.In order to avoid all these issues it would be better for the physician to pay ontime rental for the space he is using or should not run radiology services if he cannot pay.