On December 19, 2008, CMS published notice in the Federal Register that it had submitted the revised Disclosure of Financial Relations Report (“DFRR”) to the Office of Management and Budget (“OMB”) for review. Comments may be submitted to the OMB regarding the new DFRR form through January 20, 2009.

CMS had submitted the new DFRR form and other documentation for OMB review on December 12, 2008. For convenience, we have separated out the DFRR form itself, which is available here.1

The new DFRR Stark audit form is largely unchanged from the prior version. However, please note:

  • Hospitals without physician ownership/investment continue to be required to make disclosures only in Worksheets 7 and 8 in the new DFRR form.
  • Worksheet 7 is similar to the prior version of the form. In Worksheet 7 hospitals must disclose all leases, personal services arrangements, and recruitment agreements. One notable change is that previously only personal services agreements could be designated as "uniform;" however, leases and recruitment agreements now also have this option. Thus, for all types of agreements in Worksheet 7 hospitals are asked whether the agreement is uniform and whether or not it has been signed. If it is uniform, hospitals may submit only one uniform agreement instead of submitting every individual agreement.
  • Worksheet 8 requests information on essentially all other types of financial arrangements between the hospital and physicians not included in Worksheet 7. Worksheet 8 appears to be identical to the prior version of the form.
  • CMS now indicates that there will be 400 hospitals receiving the DFRR audit. Previously CMS had intended to send the audit to 500 hospitals. Which hospitals will get the new DFRR audit is not explained. We assume that the approximately 250 hospitals previously identified to receive the DFRR audit will continue to be designated recipients, leaving 150 additional and unknown hospitals that will also receive the DFRR audit.
  • Previously each physician’s UPIN was required. In the revised DFRR form, this has been updated to require each physician’s NPI.

Our DFRR Resource page on our website provides additional information, links to all of the relevant authorities, and provides background information on the DFRR Stark audit initiative.