The proposed Stark II regulations. What physicians should know

Although the proposed regulations do not yet have the force and effect of law and HCFA is still seeking input in a variety of substantive areas, the regulations as proposed reflect HCFA's current view of enforcement of Stark II. Although simply complying with the statutory language and the Stark I regulations may be enough to avoid scrutiny until the proposed regulations are promulgated in final form, this approach may set physicians and physician groups up for significant disruption in their relationships in the future, particularly when proposed regulations have called certain practices into question. Clearly, every relationship between a physician (and his or her physician group) and any entity that provides DHS should be reexamined in light of the proposed regulations. In addition, arrangements under negotiation should be structured with the proposed new requirements in mind.