Stark Law: The 27-year-old act killing healthcare reform before it can begin?

Article Commentary Written by: Garth Hogan, Executive Managing Director of Global Healthcare Services, Newmark

As we see the Affordable Care Act (ACA) and continued implementation of reform, it’s no surprise that the existing Stark Laws are being challenged on Capitol Hill. A shift from “volume based” to “performance based” medicine has changed some of the usefulness of the original legislation directed at enforcement of not allowing self-referrals.

As a healthcare real estate specialist with over 2 decades of experience with Stark and transactions between physicians and hospitals, it’s interesting to see how the Stark challenges are also under examination as it relates to determining Fair Market Value (FMV). We may see modifications made to the real estate contract portion of Stark, but I will be surprised to see much movement away from the need to keep transactions at an arm’s length. It will be interesting to see how this plays out.

Stark Law: The 27-year-old act killing healthcare reform before it can begin?

Read Article Written by Ayla Ellison | Becker's Healthcare


All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

Download Our

Sign Up for Our Newsletter