DME: Beware Of Shared Employees Under Stark II

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Note:  The following article synopsis was NOT provided by AAPC. It was created by Find-A-Code/innoviHealth.

Article Overview

This piece reviews a Stark II update with a focus on durable medical equipment suppliers and physician relationships. It discusses how the interim final rule and related CMS guidance may affect common DME business arrangements, supply closet setups, in-office ancillary services, physician-furnished equipment, and the treatment of certain services and items under Stark. The article is aimed at DME suppliers, physicians, compliance staff, and coding or reimbursement professionals who need a broad understanding of the regulatory issues covered in the rulemaking and commentary.

Why This Topic Matters

Stark-related changes can affect how DME suppliers and physicians structure relationships, share employees, and report services tied to Medicare. Understanding the scope of the article helps readers identify compliance-sensitive arrangements and determine whether the discussed guidance is relevant to their operations.

Article Sections

  1. Stark II enforcement and DME business practices

    Introduces the article’s focus on federal enforcement activity and how it may affect durable medical equipment suppliers and physician referral relationships.

  2. Shared employees and supply closet arrangements

    Discusses a physician-office supply closet scenario involving shared personnel and the compliance concerns raised by the arrangement.

  3. In-office ancillary services exception

    Summarizes CMS guidance on the in-office ancillary services exception and the types of items addressed in the discussion.

  4. Codes

    Notes CMS commentary on identifying items considered durable medical equipment, supplier reference sources, and the role of coding in Stark-related review.

  5. Drugs

    Mentions future rulemaking concerns related to prescription drug definitions in the Stark context.

  6. Physicians furnishing DME

    Covers CMS clarification regarding physicians directly furnishing equipment they prescribe and related supplier-number considerations.

  7. Pulse oximetry

    Addresses the article’s discussion of a specific service and its status under Stark.

What You Will Learn

  • How Stark II enforcement may affect DME supplier relationships with physicians
  • Which general DME business arrangements are being scrutinized
  • What CMS says about in-office ancillary service exceptions in this context
  • How the article frames physician-furnished equipment and supplier registration issues
  • Which broad service categories are discussed as changing status under Stark

Who Should Read This

  • Durable medical equipment suppliers
  • Physicians and medical practices
  • Compliance officers
  • Healthcare reimbursement professionals
  • Medical coding professionals

Codes Discussed

  • CPT: 94762

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