Productivity/bonus and Stark Law

[Vic0528]

Hello!

I work in internal medicine (outpatient) and am going on year 3 and now qualify for bonus. However, my employer told us providers that we can't get "individual productivity bonuses" anymore due to the "Stark Law" making it illegal and said our incentive would have to be shared (instead of individual) based on productivity of all 3 providers (1 MD and 2 PAs). We have an ultrasound company that comes to our office twice a month, do in office DEXAs, exercise stress tests, audiometry, and spirometry. She made it sound as though it's illegal to get bonus based on additional services we order that we perform in our office. It just doesn't sound right... Is anyone familiar with this?

If it is correct information, how else are providers getting individual productivity bonuses? Thanks!!

[ohiovolffemtp]

The short version of the Stark law is that it forbids anyone who receives payment from Medicaid from referring to entities they own or which are owned by family members.  It has absolutely nothing to do with individual productivity bonuses.  is this outside company owned by someone in the office or by someone related to them?  If that's the case, it would be illegal to get additional compensation based on referrals to them.

[Vic0528]

@ohiovolffemtp

Okay, thanks! Is it only Medicaid or are Medicare and commercial insurance involved in this too? It’s ultrasound and nuclear stress test companies ate outside companies that aren’t owned by anyone or anyone’s family members in the office. The office up charges the patient to profit. The companies themselves don’t bill patients. 

However, the DEXAs, exercise stress tests, audiometry, and spirometry we offer in office with our own equipment.

We also perform BioTE hormone replacement pelleting and purchase equipment and pellets from BioTE.