CMS Completes Sprint to Modernize the Stark Law-Part III

The Centers for Medicare & Medicaid Services (CMS) published its much-anticipated final Stark rule in the December 2, 2020 Federal Register, finalizing the most extensive changes to Stark regulations since the final Stark II rulemaking in the 2000s (the Final Rule).¹ Due to the extraordinary length and complexity of the Final Rule, this is Part III of a three-part series. Part I was published in the January 2021 issue of Health Law Connections and focused on CMS’ new “volume or value of referrals” and “volume or value of other business generated” definitions, CMS’ new approach to directed or required referrals in physician employment and personal services arrangements, and the new “indirect compensation arrangement” definition. Part II was published in the February 2021 issue and covered the new value-based arrangement exceptions. This final installment discusses CMS’ new “commercially reasonable” definition and its revised “fair market value” (FMV) definition.