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Laboratory Industry Report

Self-Referral Crackdown: Pod Labs in CMS’s Crosshairs
November 2006

The Centers for Medicare and Medicaid Services (CMS) is proposing changes that will close the Medicare benefit loophole that enables the existence of so-called "pod" or "condo" laboratories, in which labs for several group practices are located in small offices within the same building, and a pathologist moves among them. CMS recently announced a proposal to change the Stark definition of a "centralized building" to exclude both spaces under 350 feet and those that do not permanently house the equipment necessary to perform 90% of its designated health services. Medicare has reportedly received over 2,000 comments on the proposed rules.

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