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Existing Stark Rules Remain in Effect Up to One More Year
April 15, 2007
On March 26, 2004, the Centers for Medicare and Medicaid Services ("CMS") issued the interim final rule ("Phase II rules") interpreting the Stark law – the federal law governing the prohibition of physician self-referrals.
Generally, CMS has three years to respond to public comments and issue a final rule after publication of the interim rules. However, the deadline for publication of a final rule may be extended if the Secretary publishes a notice of continuation with an explanation for why the three year deadline is not being met.
Citing (1) the extensive number of letters requesting clarifications of, and revisions to the Phase II rules, and (2) the need to coordinate review and response among the multiple agencies responsible for enforcing the Stark laws, including CMS, the Office of Inspector General, and the Department of Justice, the Secretary recently published notice that the deadline for issuing the final Stark rules would be extended until March 26, 2008. The Secretary's notice indicated that CMS is undertaking an "exhaustive review" of the comments and is devoting a "significant amount of time and resources" to the process.
Although the new deadline is set for March 28, 2008, CMS could issue the final Stark rules earlier than the set deadline. The Phase II rules issued on March 26, 2004 continue to be in effect until the final rules are published.
If you have any questions about this article or need additional information, please do not hesitate to contact Mark Cunningham or any member of our Healthcare Practice Group at (423) 756-3000.