The Centers for Medicare & Medicaid Services (CMS) disappointed physical therapists and other health care providers who hoped the agency’s long-awaited new phase of self-referral regulations issued March 26 would make it more difficult for physicians to refer to entities in which they have a financial interest. An in-depth analysis, by APTA federal regulatory staff found that the new interim final rule on the physician self-referral statute, commonly referred to as “Stark II,” generally interpreted the self-referral prohibitions narrowly and the exceptions to the ban broadly.

In particular, the new rules broadly interpret the “in-office ancillary services” exception to enable physicians to provide physical therapy and other services as part of their practice, including revising the definition related to providing the services in the same building. A number of new exceptions to the self-referral ban also are created, including “professional courtesy” services to physicians and their families and office staff, and temporary noncompliance with the rules. The rules require all entities to submit information regarding their financial relationships only if requested by CMS or the Office of Inspector General.

The full text of the Stark II regulation can be read at www.access.gpo.gov/su_docs/fedreg/a040326c.html. You can submit comments on the interim final rule until June 24, 2004. The rule takes effect June 26, 2004. Submit your comments electronically to www.cms.hhs.gov/regulations/ecomments. Mail written comments (one original and two copies) to: Centers for Medicare & Medicaid Services
Department of Human Services
Attention CMS-1810-IFC
PO Box 8013
Baltimore, MD 21244-8013.

{Source: www.apta.org}