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The Stark Act, 42 U.S.C. Â§ 1395nn, is a piece of legislation that was enacted to combat kickbacks to physicians for the referral of lab tests. Elsenety v. Health Care Fin. Admin., 85 Fed. Appx. 405, 409 (6th Cir. 2003).
Under Stark, compensation paid to a physician under a medical directorship that exceeds fair market value, or for which no actual services are rendered, triggers the referral and payment prohibitions of Stark with respect to inpatient and outpatient hospital services referred by such physician.egulatory Guidance on the Application of Fair Market Value for Stark Exceptions. The Stark regulations and commentary provide insight into how CMS expects the fair market value requirements of Stark exceptions to be applied in transactions.