Stark Law Terminology And Definitions

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Stark Law Violation Penalties
Stark Law Violation Penalties

Whidbey General Hospital fine settles Stark Law violations:
“The Office of Inspector General reported in a statement that Whidbey General had over 100 violations surrounding various contracts and agreements. In addition to the lack of contracts and unsigned contracts, investigators identified “a variety of improper lease arrangements, personal service arrangements, malpractice subsidies, and a housing allowance and an equipment loan with one physician.”
The violations were unintentional, self-reported and didn’t cost Medicaid and Medicare any unnecessary expenses, but that doesn’t matter to the federal government. Tomasino explained that the Stark Law is a strict-liability law, which means intent doesn’t matter.
Hospital officials and federal officials finally negotiated a penalty last September. The hospital agreed to pay $858,571 for the violations, which is a somewhat modest fine compared to penalties that often run in the millions, hospital public affairs officer Trish Rose pointed out.” (4)

Tuomey Hospital to Pay $45M for Stark

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