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6. Sales of Physician Practies (encompassed by broader "Isolated Transactions" Stark regulatory exception)

Consideration paid for a physician practice, provided both of the following standards are met:

1.  The period from agreement to completion of sale does not exceed one year.

2.  Seller will not be in professional position to refer to purchaser after one year from date of first agreement to sell.


Exception:  A hospital located in a health professional shortage area (“HPSA”) can buy and “hold” the practice of a retiring physician for up to three years pending recruitment of a physician to replace the one retiring, provided the hospital engages in good faith efforts to recruit a new physician and its recruitment efforts comply with the Physician Recruitment safe harbor (42 C.F.R. § 1001.952(n)).

Anti-Kickback Safe Harbor

Sources: 42 C.F.R. § 1001.952(e)

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