Lawrence Vernaglia Assesses CMS Location Guidance for Critical Access Hospitals

Foley & Lardner LLP partner Lawrence Vernaglia is quoted in the Report on Medicare Compliance article, “CMS: CAHs May Share Space With Other Providers; Keep Eye on Stark, CoPs,” published by the Health Care Compliance Association.

Describing recent guidance issued by the Centers for Medicare and Medicaid Services (CMS) on critical access hospitals (CAH) sharing space with unrelated providers, Vernaglia said that CMS is “demonstrating flexibility and respect for rural care, which has a significant access problem right now.”

“There’s a huge access problem in rural areas,” he continued, “especially with specialist physicians, and they’re the ones likely to take advantage of this.”

Vernaglia noted that CAHs interested in space sharing should familiarize themselves with local licensing permits. “Just because CMS lets you do it doesn’t mean the state health department will tolerate that level of co-location,” he explained, adding that sharing spaces could raise concerns over Stark Law violations.

“It would be remuneration unless it meets a Stark exception,” Vernaglia said of space sharing arrangements with a referring physician or immediate familiar member. “I would also be careful of facility versus non-facility billing rules.”