Stark Law Case Study

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As healthcare cost, rapidly increase, healthcare professionals are finding innovative ways to contain cost. Occasionally, the healthcare organization may find themselves entombed in an ethical decision and find it difficult to take the appropriate action. In this paper, I will analyze the case study of Dr. S. and Dr. V.; and deliberate how the actions of Dr. S. and Dr. V. violated the Stark Law. A brief synopsis of the case study, in efforts of maintaining revenues within the nuclear department Dr. S. and Dr. V., decided to lease a nuclear camera to refrain from referring patients to the local hospital, the actions of the physicians would result in the hospital losing a huge profit. To take a stance, the hospital refuted with a threat…show more content…
40). Dr. V. and Dr. S. violated the Stark Law, initially, they did not violate the law when they decided to lease a nuclear camera. Although the Stark Law prohibits self-referrals for Medicare and Medicaid, there are exemptions; physicians may perform DHS services if they ordered the service. Under the assumption that Dr. V and Dr. S. ordered the services, they were not in violation of the Stark Law. The physicians offered to sublease the nuclear camera to the hospital, this was a violation of the Stark Law. Under the Stark Law physicians are prohibited from completing any acts under Medicare and Medicaid that are for financial interest or gain. Dr. S. and Dr. V. crossed a thin line of what was lawful and unlawful, since the physicians already had partnership with the hospital, to gain immunity for admitting patients to the hospital, they let them use the nuclear camera as a tradeoff. This nuclear camera was used for Medicare patients and Medicare was billed for services. The problem with this, since the physicians were in affiliation with the hospital a financial

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