We recapped the Stark Law cases worth noting in 2024, and now it is time to highlight what you need to know about it in 2025 — as it continues to play a crucial role in regulating healthcare practices. For those wondering what the focus of Stark Law is, it prohibits physicians from self-referring patients for certain designated health services (DHS) where they have a financial interest. The primary goal is to protect patient care by preventing financial incentives from influencing medical decisions.
Although it is not a criminal statute, Stark Law violations can lead to substantial fines and potential exclusion from Medicare, Medicaid, and other state healthcare programs. But most importantly, such violations, whether intentional or not, can jeopardize patient safety.
To navigate these regulations effectively, healthcare providers must stay up to date on the latest Stark Law changes. Our Stark Law attorneys outline key considerations for 2025 to help ensure compliance and protect your practice.
It is crucial to be aware of the Stark Law healthcare exceptions to distinguish between compliance and non-compliant practices. While there are several exceptions, we will focus on two main ones: Bona Fide Employment Relationships and Value-Based Arrangements.
The Bona Fide Employment Relationships exception allows physicians to receive compensation from their employers for referrals, as long as the employment is genuine, the compensation is consistent with fair market value, and the arrangement does not take into account the volume or value of referrals (keeping the patient’s best interest in mind). This exception is designed to enable healthcare businesses to fairly compensate employed physicians for their work, without compromising ethical standards or patient care.
One of the more recent exceptions to the Stark Law to keep in mind in 2025 is for Valued-Based Arrangements. This exception supports financial relationships that promote coordinated care and improved patient outcomes. This exception encourages collaboration among healthcare providers to deliver high-quality, cost-effective care, enhances overall care efficiency, and allows flexibility in compensation arrangements that meet value-based objectives.
Working with an experienced Stark Law attorney ensures your practice is aware of potential violations that could result in legal issues or fines. A few key violation examples to remember for 2025 include:
Fenton Jurkowitz Law Group has a team of seasoned Stark Law attorneys who are well-versed in California law, including the Stark Law and anti-kickback statutes. It is important to have legal counsel on your side to ensure you and your healthcare practice are protected. Fill out our contact form on our website today to connect with a Stark Law attorney.