According to healthcare supporters, Stark Laws intruded into medical practice and caused obstacles in managed care networks.  President Clinton agreed and vetoed the regulations in 1995.

Now we can fast-forward to the present.  Starting October 1 of this year, The Centers for Medicare and Medicaid Services (CMS), ban fee payments in space and equipment leases when reimbursement is for healthcare services given to patients from referral between the parties.

Thus, equipment owned through a leasing company by a physician may not be leased to a facility that the physician uses or refers to.  Because the practice is vulnerable to abuse, it is illegal according to the Federal Medicare and Medicaid Anti-kickback Statute (AKS). Physicians can get an exemption if they are working no prescription ventolin inhaler only in a consulting capacity.

As of October 1,2009, both the healthcare facility that bills for rendered services and the provider that gives those services fall under the Stark umbrella. This prohibits the referring doctor from having an owner interest in equipment of the health site.

Separate components of hardware and supplies may or may not fall into the Stark regulations.  However CMS is being very vigilant about possible violations.

Hence, owning the hardware or software for your upcoming electronic medical systems and leasing it to your practice or to the healthcare facility may set off alarms.  Better to have the facility purchase it in its name directly and not have to look over your shoulder.