It’s time to change the Stark Law

Healthcare rules and regulations are in constant flux and hospital administrators and providers can use their influence to advocate on behalf of our patients and the communities we serve to help enact change or inform when change happens. At Novant Health we believe the healthcare experience should be more convenient, accessible and affordable for everyone and are doing our best to deliver the Quadruple Aim to all of the communities we serve. However, outdated anti-trust and Stark laws, written 30 years ago before email, cell phones and fitbits, create significant hurdles to achieving the full benefits of a value-based care model.  

As a proponent of affordable, quality health care for all, I am encouraged when I see steps taken to close the coverage gap and make care accessible to more people. Since late 2016, I have been collaborating with the American Hospital Association to draft a proposal recommending revision of both anti-trust and Stark regulations to incentivize an industry shift towards value-based care versus the current model of fee-for-service care. I applaud CMS’s focus on the delivery of quality and cost efficient patient care through increasing value-based payment models. Yet, to effectively transition to paying for value, hospital systems need greater flexibility to promote and reward quality performance, incentivize cost reduction and advance clinical integration. Stark regulations must be revised to remove obstacles to care coordination and to promote collaborative models that reward quality patient care and the efficient use of a team of caregivers focused upon achieving measurable improved outcomes. 

I couldn’t be more pleased that the Centers for Medicare and Medicaid Services (CMS) are seeking guidance with respect to revising the antiquated Stark Law to eliminate aspects that interfere with seamless care delivery. The healthcare industry has been talking about value-based care, a multidisciplinary approach to care, team care and health home for a long time. The common thread in all of these innovative models is care coordination between providers to improve quality and reduce duplication. Advancements like electronic health records (EHR) have provided a significant step toward opening access, offering patients choice and seamless communication between care providers. With less duplication of services, we also stand to spend less money. Most importantly, it’s better for the patient.

The current regulatory framework must be updated to stop the chilling effect on innovation in healthcare delivery. Key revisions to the Stark Law, including those proposed by AHA and Novant Health directly, will unlock innovation to truly transform healthcare into a more cost-effective system designed entirely around the needs of our patients and their families.