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20 Health Law. 1 (2007-2008)

handle is hein.journals/healaw20 and id is 1 raw text is: THE ABA HEALTH LAW SECTION H ona continued its efforts in Phase III to reduce the regulatory burden on the healthcare industry through its interpretation and modification of previously promulgated exceptions to the Stark law's general prohibition on referrals. The new regula- tions will be effective December 4, 2007. Although Phase III is intended as the final phase of the CMS rulemaking process, it is actually not the last piece of the Stark puzzle. There are several other significant rulemaking proposals, pending legislation, and a CMS mandate regarding disclosures of hospital-physician financial relationships, any and all of which may lead to more changes to the Stark regula- tions and may have a profound impact on the healthcare industry. This article is intended nevertheless to set forth the full picture of the Stark law and regulations as of the conclusion of the Phase III rule- making, and to provide health industry counsel with a tool to assist in navigating through the Stark regulations. This article will: (1) address the highlights of Phase III; (2) identify potential future changes to the Stark regulations; and (3) set forth the complete Stark regulatory scheme as finalized by Phase III. continued on page 3 Andrew B. Wachler, Esq. Wachler & Associates, PC Royal Oak, MI Adrienne Dresevic, Esq. Wachler & Associates, PC Royal Oak, MI Introduction On September 5, 2007, the Centers for Medicare and Medicaid Services (CMS) completed the long-awaited third and final installment in its rulemak- ing process under the federal physician self-referral prohibition commonly known as the Stark law.' The new final rule,2 referred to as Phase III, responds to public comments regarding the Phase II interim final rule with comment period published on March 26, 2004,' and addresses the entire Stark law regulatory scheme. As in Phases I and I1, CMS has SPECIAL EDITION SEPTEMBER 2007 STARK LI PHASE III - THEFULL PICTURE Highlights of the Phase III final rule, potential future changes, and the overall regulatory scheme

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