Client Alert

Proposed Stark Law Amendment and Rule Changes: Major Restructuring Ahead?

August 23, 2007

James F. Owens and Paul A. Gomez

By now, most healthcare providers and suppliers are at least generally aware of proposed new rules affecting Stark law compliance. A lesser known legislative development is Section 651 in House Resolution 3162, which, if passed, will dramatically alter physician ownership in hospitals. Both the proposed amendment to the Stark law in H.R. 3162 and the recent proposed rule changes in the federal register may have a significant impact upon common business practices involved in hospital/physician joint ventures and other relationships.

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