In a new Frequently Asked Question, CMS said that all physician recruiting agreements, even those that pre-date the Stark II Phase II regulations, must comply with the regulations effective July 26, 2004. According to the FAQ, the Phase II regulations, including the new exception at § 411.357(e)(4) for certain joint recruitment arrangements, go into effect July 26. Therefore, "a hospital-funded recruitment arrangement in which the recruited physician is subject to a restriction against competing with the group will not comply with the new joint recruiting exception in the Phase II regulations." To read the FAQ, go here.
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