What is the personal services arrangements Stark exception?
Under this exception, a physician may engage in a contract, essentially, making him an independent contractor to the referred-to entity. The following requirements are necessary to meet this exception: • The contact must be in writing, signed by the parties, detailing the services to be provided by the physician or immediate family member. • The provided services must be reasonable and necessary. • The contract must have a term of at least one year. • The compensation must reflect neither volume nor value of referrals. • The services must not involve counseling or promotion of a business arrangement or activity that violates state or federal law. • This exception typically applies to fair market value, fixed-rate personal service contracts (27).
