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Hospital ownership exception

The Stark law provides three exceptions that are applicable to hospital ownership by a physician or immediate family member of the physician. One exception applies solely to ownership of a hospital in Puerto Rico. Another exception applies to ownership of a hospital in a rural area. The last exception has greater application, as it provides an exception for ownership interests in a “whole hospital” not located in Puerto Rico or rural areas.

The exceptions only apply to direct or indirect ownership interests in hospitals. To the extent that a physician or an immediate family member has a separate compensation arrangement with a hospital (such as through a service arrangement, employment arrangement or the like), then that compensation arrangements must meet a separate exception to the law to permit physician referrals to the hospital.

Click on the links below to access information regarding the following hospital ownership exceptions:

The Stark law exception for physician-owned hospitals has been the subject of considerable controversy in recent years. To read background on this exception, read Ownership in a whole hospital – background

Back to <<< Hospital Internal and External Relationships introduction

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