With the end of the COVID-19 public health emergency (PHE) nearing, hospitals and other health organizations must respond to changes to Stark Law compensation waivers that were put into place in 2020. Many of these changes are discussed by PYA principals, Lyle Oelrich, Knoxville, and Tynan Kugler, Atlanta, in the article, “Consider Three-Step Process to Pivot to Post-PHE Loss of Stark Waivers,” in the April 24, 2023, issue of Report on Medicare Compliance. The national publication is produced by the Health Care Compliance Association to provide updates on compliance strategies specifically pertaining to Medicare.
In the article, Oelrich and Kugler offer expert advice regarding changes to fair market value compensation for physicians and provide steps to prepare for upcoming changes. “Even if you were compliant prior to March 30, 2020, and met the fair market value definition, you may not meet the new fair market definition going forward as we reach the end of the PHE,” Oelrich says.
Kugler shares PYA’s three-step process to help health organizations prepare for the removal of Stark waivers:
- Identify which, if any, blanket waivers were used
- Document justifications for using waivers
- Recalibrate the financial arrangements
“We anticipate a number of arrangements that relied on the waivers will need to be re-evaluated from a fair market value and commercial reasonableness perspective,” Kugler says.
Oelrich’s and Kugler’s comments were made during a PYA webinar on March 28, 2023. Watch a recording of the March 28 webinar. Can’t watch the webinar? Listen to the webinar recast, the audio portion of the webinar.
The March 28 webinar was the first of PYA’s Timely, Tough, or Tricky webinar series that examines hot topics in physician compensation and fair market value. PYA surveyed more than 50 physician compensation experts to understand their collective thoughts on the topics, and many of these topics and more are addressed during the complimentary webinars.
For more information on the end of the PHE, visit our End-of-PHE Resources page.
If you would like assistance with physician compensation or fair market value or any matter involving valuation, compliance, or strategy and integration, one of our executive contacts would be happy to assist. You may email them below or call (800) 270-9629.