Knapp Medical Center v. Hargan

KAREN LeCRAFT HENDERSON, Circuit Judge:

To prevent Medicare abuse through self-dealing, the Stark Law prohibits a physician from referring patients to a hospital or other healthcare facility in which he has a financial interest. There is an exception, however, for a physician-owned hospital, as long as the hospital complies with various reporting requirements. The Affordable Care Act amended the Stark Law to limit the ability of a physician-owned hospital to expand but carved out expansion exceptions for hospitals in medically under-served areas. As amended, the Stark Law prohibits judicial…