The Centers for Medicare and Medicaid Services (CMS) recently sent a tremor throughout the health care provider world, says Dorsey partner Ross C. D'Emanuele in Health Law360. The calendar year 2008 proposed Medicare physician payment rule includes far-reaching changes to the Stark regulations, diagnostic test payment rules, and independent diagnostic testing facility (IDTF) standards, among others.

D'Emanuele says the proposed rule undoubtedly signals CMS’ willingness to make significant changes to Stark annually through the physician fee schedule rule, rather than address Stark changes comprehensively in a Stark Phase III regulation.  This creates an environment of legal instability for hospitals, physicians, and other health care providers.  In addition, providers must now consider whether the proposals would make existing arrangements illegal or require changes to existing business structures, and then wait until late 2007 to see if the proposals are adopted or modified.

Read the article

"CMS Creates Uncertainty With Proposed Changes" was published by the daily newsletter Health Law360, July 31, 2007.