What is the Stark Period of Disallowance?

The Stark Period of Disallowance refers to a timeframe in which healthcare providers may not bill for services related to referrals that violate the Stark Law, which prohibits physician self-referral for Medicare and Medicaid services. When a Stark violation occurs, any referrals made under those non-compliant relationships cannot be compensated, meaning that the provider is barred from receiving payment for the services involved in the improper referral.

This period is crucial as it underscores the importance of compliance within healthcare practices to protect both patient welfare and the integrity of Medicare and Medicaid programs. Understanding this concept helps healthcare compliance professionals ensure adherence to regulations that mitigate conflicts of interest and promote ethical healthcare practices. The recognition of such disallowance periods encourages rigorous evaluation of financial relationships and referrals to maintain compliance with Stark regulations.