Clineeds is a platform that links those who wish to rent or purchase healthcare space or practices to those who wish to lease or sell said spaces or practices. We are not real estate agents, nor are we a brokerage firm.
We understand that you have a busy schedule. Allow us to make the most of your time and energy by helping you find or list your space(s) and/or practice(s).
You should also know about the Stark Law and Anti-Kick Back Statute, which may affect you if you enter into a lease agreement with another provider. Congress first enacted the Stark Law in 1989 to prevent physician self-referrals of clinic lab services. Ever since, Congress has broadened the scope of the law to include more types of services. The Stark Law now prohibits physicians from referring their Medicare or Medicaid patients for any designated health services (“DHS”) to other physicians or groups with whom the referring provider has a financial relationship. The law is intended to stop abuse by preventing providers from making referrals from which they benefit financially. Referrals between providers with financial relationships are called “self- referrals” and are illegal, absent certain exceptions.
DHS are types of health services for which Medicaid or Medicare will reimburse. The Centers for Medicare and Medicaid Services provides the following list of DHS items and services:
Any provider who performs any designated health service is a DSH provider.
When you lease office space to or from a physician or group through Clineeds, you have a financial relationship with that physician or group under Stark’s Law. Once you have formed a financial relationship, you cannot make certain types of DHS referrals to that provider unless you meet specific legal exemptions. If you do make referrals in violation of the law you can be cited and receive severe penalties, including, but not limited to, Medicare or Medicaid denial of charges billed by the DHS provider, civil penalties up to $15,000 per instance for intentional violation, civil penalties up to $100,000 for attempting to circumvent Stark’s Law, and revocation of the right to bill Medicare or Medicaid.
If you are considering leasing and wish to make DHS referrals, you should consult an attorney before entering into a lease agreement. There are exemptions to to Stark’s Law, and an attorney specializing in health care can advise you whether or not you meet specific exemption requirements to make DHS referrals.
We want you to be fully informed about your lease and the laws and regulations that may affect it. For more information about Stark’s Law and other regulations such as the Anti-Kickback law read about it here or consult a healthcare attorney.