CMS finalizes major updates to the Stark Law

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CMS finalizes major updates to the Stark Law

February 17, 2021
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From the January/February issue of HealthCare Business News magazine
CMS revised its exceptions for the rental of office space and rental of equipment, which protect compensation arrangements between referring physicians and DHS entities for leased office space/equipment. The revisions were made to clarify that the “exclusive use” requirement applies only to the lessor. CMS clarified that the lessee (and related parties) may use the office space/equipment to the exclusion of the lessor. In other words, only the lessor (and related parties) is excluded from use, not lessee-related parties.

Cybersecurity technology protection
CMS also established new safeguards for donation of certain cybersecurity technology and associated services. CMS expanded the Electronic Health Record (EHR) exception to permit such technology/services to be donated to protect EHR systems. CMS also established a stand-alone exception for cybersecurity technology/services to apply more broadly, which protects donations of cybersecurity technology/services necessary to implement, maintain, or reestablish cybersecurity.

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About the authors: Adrienne Dresevic, Esq., is a founding shareholder of The Health Law Partners, P.C., a nationally recognized healthcare law firm with offices in Michigan and New York. Practicing in all areas of healthcare law, she devotes a substantial portion of her practice to providing clients with counsel and analysis regarding compliance, Stark Law, Anti-Kickback Statute, and compliance related issues.

Arturo Trafny, Esq., is an associate attorney at the Health Law Partners, P.C. Mr. Trafny graduated from Chicago-Kent College of Law. Practicing healthcare law, Mr. Trafny concentrates on regulatory and transactional matters.


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