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As many providers already know, the Stark law prohibits physicians from making referrals to providers who render “designated health services” (DHS) if the referring physicians have an ownership or investment interest in, or compensation arrangement with, the provider. Exceptions to these general rules were published in the form of final regulations on Jan. 4, 2001, and are known as Phase I Stark rules. On March 26, 2004, Phase II Stark regulations were published as interim final rules in the Federal Register.

LegalEase: New Phase II Stark rules affect provider payments