CMS Extends Deadline For Publication of Final Stark II, Phase III Rule
Client Alert | 1 min read | 03.21.07
As expected, CMS announced today that it is extending the timeline for publication of the final rule implementing the Stark Law (the “Phase III Rule”) for one year. With this extension, the interim final rule issued on March 26, 2004 (the “Phase II Rule”) will remain in effect until March 26, 2008, at which time CMS will publish the Phase III Rule.
The timeline for publishing a final regulation cannot exceed three years from the date of publication of the proposed interim final rule, unless there are “exceptional circumstances.” CMS attributes the “numerous and varied” public comments received following publication of the Phase II Rule, as well as the substantial “interagency coordination” among CMS, the Office of the Inspector General, and the Department of Justice, (resulting from their joint authority to enforce the Stark Law), as the justification for the one-year extension.
This leaves unanswered for at least one more year critical and outstanding issues under the Stark Law, including: 1) the Law’s applicability to Medicaid referrals and claims; 2) the potential for expansion of the physician recruitment exception to accommodate certain practical considerations; and 3) the potential narrowing of the in-office ancillary services exception to preclude certain referral practices that are understood to be deemed questionable by CMS.
Insights
Client Alert | 4 min read | 08.07.26
Missouri AG Sues Kansas City Over Race- and Sex-Based Contracting Program
On July 22, 2026, Missouri Attorney General Catherine L. Hanaway filed a federal lawsuit against the city of Kansas City, Missouri, challenging the city’s longstanding Minority and Women Business Enterprise (MWBE) program as unconstitutional. The AG filed the complaint in the U.S. District Court for the Western District of Missouri alongside private plaintiffs Charles Cacioppo Jr. and his company, Industrial Salvage and Wrecking Co.
Client Alert | 2 min read | 08.06.26
Client Alert | 2 min read | 08.03.26
New York Becomes First State to Restrict Addictive Social Media Features for Minors
