Comparison Chart of Anti-Kickback Safe Harbors and Stark Exceptions -- Sale of Practice

Sale of Practice – Current as of March 2021

Stark
[No comparable exception]

Anti-Kickback
Safe harbor for payments made to a practitioner by another practitioner where first practitioner is selling a practice to the second practitioner

 

The period from the date of the first agreement pertaining to the sale to the completion of the sale is not more than one year.

 

The practitioner who is selling his or her practice will not be in a professional position to make referrals to, or otherwise generate business for, the purchasing practitioner for which payment may be made in whole or in part under Medicare or a State health care program after one year from the date of the first agreement pertaining to the sale.

 

Remuneration under this provision does not include any payment made to a practitioner by a hospital or other entity where the practitioner is selling his or her practice to the hospital or other entity, so long as the following four standards are met: a) the period from the date of the first agreement pertaining to the sale to the completion date of the sale is not more than three years; b) the practitioner who is selling his or her practice will not be in a professional position after completion of the sale to make or influence referrals to, or otherwise generate business for, the purchasing hospital or entity for which payment may be made in whole or in part under Medicare or a State health care program; c) the practice being acquired must be located in a Health Professional Shortage Area (HPSA), as defined in Departmental regulations, for the practitioner's specialty area; d) commencing at the time of the first agreement pertaining to the sale, the purchasing hospital or entity must diligently and in good faith engage in commercially reasonable recruitment activities that may reasonably be expected to result in the recruitment of a new practitioner to take over the acquired practice within a one year period and will satisfy the conditions of the practitioner recruitment safe harbor.

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