A doctor and Hospital Guide to meet Federal Stark and anti-kickback law



This article discusses the federal “Stark” law and the federal “anti-kickback” law. This article uses legislation and court cases to summarize two factors. This particular article focuses on the possible responsibility of the physician under this law. The article is intended to provide information to physicians and hospitals on how to comply with these laws in connection with patient referral. This article is derived only from the original public bodies, in particular the relevant caselaw and legislation.

Federal “Stark” Songs

The federal Stark Act only cure and only a kick-ass doctor or family member to the doctor receives from referring Medicare and Medicaid patients to laboratories where the physician or family the doctor has a financial interest. 42 U.S.C. 1395. The Stark law was later amended to also prohibit physician referrals to other healthcare companies in which the physician may have a financial interest. 42 U.S.C. 1395 (b) (1). The Stark law is strict liability laws. Id.

The Stark law apply directly to doctors and not the providers of medical equipment, knowledge centers or services on the market or any other party. Thus, such services are not liable under the Stark law and Stark law is applied to the issue in question. Id.

Federal Anti-Kickback approved

However, unit responsibilities under federal anti-kickback laws for certain functions enumerated below. The federal Anti-Kickback was designed to correct the inappropriate granting subcontracts as well as corruption of officials, employees or agents Prime Contractors who are somehow involved in the awarding of subcontracts involving the use of state funds. 41 U.S.C. §§ 51,52,54; Howard v. US, 345 F.2d 126 (1 Cir. 1965) The Anti-Kickback Act applies broadly to financial links with any party that is a source of patient referrals to other party to a financial relationship. Id. The Anti-Kickback Act extends to “measure” as well as a reference, but not the definition of the word “reference” is found in the law. Id.

Furthermore, the key distinction between the federal Stark and anti-kickback law is where Stark Act is a strict liability law, the Anti-Kickback Act requires proof of unlawful intent. Id.

Under the Anti-kickback law, it is illegal to intentionally solicit or receive any commission “instead refer the person to a person for the delivery of any item or service that the payment can be made in whole or in part under the federal health care plan. 42 USC § 1320A-7b (b) (1) (A).

case under Anti-kickback approved

The caselaw is according to Anti-Kickback Act only rules references in policy rate is involved, such as Medicare and Medicaid v US cancer centers America, not the F.Supp.2d 2005 WL 2035567 (ND Ill.) .. Porale V US ex rel .. St. Margaret Hosp., 243 F.Supp. 843, 848 (CD Ill. 2003) Thus, if no federally funded program is concerned, Anti-Kickback Act did not come into play in this scenario. Id.

necessary Intent and mandatory Federal Contracts liability under Anti-kickback approved

If any federally funded programs such as Medicare or Medicaid take part in the scenario, the Anti-Kickback Act applies, although the participation of federally funded program does not necessarily contrary to the Anti -kickback law. Id. The Anti-Kickback Act deals with the circumstances surrounding the referral themselves. Id. Analysis is whether the arrangement is designed to improperly obtain or reward terms for the server with the “kickback.” Id.

The term “kickback” has been defined by one court in the Anti-kickback case situation where the rate of payment paid to persons for grant aid, one in a position to open or manage a source of income and is not limited to the return of funds to the previous owner. US v. Hancock, 604 F.2d 999 (7 ​​Cir. Ind. 1979).

However, the Anti-Kickback law is forbidden to make or “kickback” payments, except in connection with contracts with the federal government on a cost-plus-a-fixed-fee or other cost paid basis. Payments in connection with nonfederal cost-plus-a-fixed-fee contract are not prohibited by law. U.S. v. Webber, 270 F.Supp. 286 (D.Del. 1967).

Thus, if the arrangement of the issue does not involve agreements with the federal government in a cost paid basis, Anti-Kickback Act does not apply. Id.

Furthermore, the law does not prohibit kickback payments in connection with either nonfederal federal contract or fixed-fee contract. 41 U.S.C. § 51; U.S. v. Dobar, 223 F.Supp. 8 (MD Fla. 1963) Thus, if the arrangement of the publishing industry is just federal fixed-fee contracts with the state, it is not prohibited by the Anti-kickback laws. Id.

Since not show intent or purpose of violating anti-kickback statutes, there is no violation of anti-kickback laws. McDonnell v. Cardiovascular Vascular Surgical Associates, Inc., did not F.Supp.2d 2004 WL 3733402 (SD Ohio 2004) Therefore, if there is no evidence of intent to violate the Anti-kickback statutes, it is no criminal offense under the law.


As noted above, if there is no payment to one in a position to “open or direct source of income,” there is no violation of the Anti-Kickback Act. Id. Thus, if the situation in question does not involve the payment of a “one in a position to open or manage a source of income,” there is no violation of the law. Id. There is also no violation if no federal funding is involved. Id. And there is no violation absent outcome of intent to break resolutions. Id.

This article may not copy or paste text from any private. All sources are cases criminal courts or public law.


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