MGMA Recommends Further Changes to Stark II Phase II Rule

ENGLEWOOD, Colo. -- "After a thorough analysis of the Stark II phase II rule, the Medical Group Management Association (MGMA) recommends additional modifications to make it feasible and more effective," said William F. Jessee, MD, FACMPE, president and CEO of the Medical Group Management Association (MGMA).

In formal comments submitted to the Centers for Medicare & Medicaid Services (CMS), the MGMA strongly urged the agency to revise the physician recruitment exception included in phase II.

"CMS made the physician recruitment exception unduly restrictive, significantly hampering the ability of hospitals to assist group practices with physician recruitment," Jessee said. "The exception discriminates against medical group practices by permitting hospitals to cover more costs to recruit solo-practice physicians than to recruit those in group practice settings."

In addition, the MGMA advised CMS to revise the Stark law's community-wide health information systems exception. "While we commend CMS for attempting to remove any legal barriers that will deter the adoption of important health information technology (HIT), MGMA believes that the exception as currently structured will prevent widespread HIT adoption as envisioned by MGMA and the federal government," Jessee said.

Among its recommendations, MGMA urged CMS to provide additional flexibility for entities wishing to provide information technology.

Further, MGMA outlined the need to define a "community-wide health information system" more clearly.

The MGMA contends that CMS should provide additional time to comply with any new provisions, including regulatory exceptions, included in the phase II rule. This would give group practices sufficient time to review their current business arrangements, and in some cases, revise them to comply with the new requirements.

"Despite these issues, the MGMA applauds CMS for taking positive steps to simplify the physician self-referral regulatory framework," Jessee said. "MGMA commends CMS for making beneficial changes and clarifications to such provisions as the 'same-building' test and 'group practice' definition.

"MGMA will continue working with CMS to make the Stark rule as clear and flexible as possible for group practices faced with the difficult task of complying with this extremely complex regulation."

The MGMA, founded in 1926, is the nation's principal voice for medical group practice. MGMA's 19,000 members manage and lead more than 11,500 organizations in which more than 237,000 physicians practice. MGMA's core purpose is to improve the effectiveness of medical group practices and the knowledge and skills of the individuals who manage and lead them.

Source: MGMA

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