Stark II Regulations

An Analysis and Summary of the New Rules by Powers Pyles Sutter & Verville PC, Attorneys at Law

January 16, 2001

Long-awaited final regulations implementing the Stark II law were published in the Federal Register of January 4, 2001. Vol. 66 Fed. Reg. pages 856 to 965 ("the January 2001 rule," also referred to as the "final rule" or the "Phase I rule"). These regulations were first published in proposed form in January of 1998 ("the January 1998 proposal"), and apparently the Clinton Administration was anxious to get them out before leaving office. The final rule published last week, however, is only a partial rule, with some aspects of the 1998 proposal still awaiting final action in yet another rulemaking still to come.

This memo provides our initial analysis of the new rules and summarizes the state of Stark II as we understand it. For guidance concerning the applicability of this complex law to your particular arrangements, please contact any attorney at the Firm at 202-466-6550.

You may view the entire Stark II analysis and summary online, or download a Word document containing the same information.

To view online:

• Introduction
• The Basic Prohibition
• General Exceptions Protecting Ownership, Compensation or Both
• Bona Fide Group Practices for Purposes of Stark
• Compensation Exceptions Included in the Phase I Final Rule
• Other Key Definitions
• Certification of Need for Home Health Services

To download:

• Download entire Stark II analysis and summary in Word format