This is an excerpt from a member-only article. To read the article in its entirety, please login or subscribe.

The Phase II Stark regulations, published March 26, 2004, reflect the Centers for Medicare & Medicaid Services' (CMS) attempt to "preserve the core statutory prohibition while providing sufficient flexibility to minimize the impact of the rule on many common business arrangements." Despite CMS' well-intentioned effort, Stark's "core statutory prohibition" remains so broad and far-reaching that the new regulations provide limited actual relief for the healthcare industry.