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Questionable Hospital Financial Relationships with Physicians

Questionable Hospital Financial Relationships with Physicians


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Lewis M. Mustard, PhD, LLB
Hospital and physician financial relationships are coming under even more scrutiny by the Centers for Medicare & Medicaid Services (CMS) and the Office of Inspector General. Clearly, CMS intends to audit vastly more hospital-physician financial relationships as part of Stark compliance. CMS has already begun sending a Disclosure of Financial Relationship Report to 400 hospitals as part of enforcing the Deficit Reduction Act. Those hospitals that do not respond truthfully and promptly may be subject to noncompliance with a Medicare condition of participation and therefore ineligible to participate in the Medicare and Medicaid Programs.