Unbiased Analysis of Today's Healthcare Issues

Stark regrets creation of “Stark laws”

Written By: Jason Shafrin - Dec• 03•07

Forbes’ The Science Business blog has an interesting interview with Congressman Fortney “Peteâ€? Stark (D-Calif.).  Mr. Stark was the legislator responsible for the creation of the Stark laws banning self referrals by doctors to facilities in which they had an ownership interest.  For instance, the law means that “a doctor can’t refer a patient to an physical therapy practice, lab or other facility that she owns part of because then she’ll benefit from the revenue associated with the services provided.”

Supplier-induced demand is a serious problem and one reason for rising medical costs.  Yet Mr. Stark regrets his decisions.  He would instead prefer to “go back and strip down out the original fuzzy language so the law simply forbids kickbacks.”

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2 Comments

  1. HealthBlawg says:

    David Harlow quoted on Stark implications of making a list and checking it twice…

    Pete Stark may be having second thoughts about the rules that bear his name (tip of the hat to Jason Shafrin, the Healthcare Economist), but we do have to live with their ever-changing effects.The HealthBlawger is quoted in Eli’s Part…

  2. […] be having second thoughts about the rules that bear his name (tip of the hat to Jason Shafrin, the Healthcare Economist), but we do have to live with their ever-changing […]