How to Use the Self-Referral Disclosure Protocol (SRDP) to Voluntarily Report Stark Law Violations

Episode Date: August 10, 2022

In this episode of Stark Integrity, Bob Wade (“Captain Integrity”) walks through one of the most important—and often stressful—situations in healthcare compliance: what to do when you discover a Stark Law violation.

Bob provides a practical roadmap for using the Self-Referral Disclosure Protocol (SRDP) to voluntarily report violations to the Centers for Medicare & Medicaid Services (CMS).

What Is the SRDP?

The Self-Referral Disclosure Protocol (SRDP) is a voluntary process established by CMS that allows healthcare providers and organizations to:

• Disclose actual or potential Stark Law violations
• Resolve liability related to improper referrals
• Potentially negotiate reduced penalties

Because Stark Law is a strict liability statute, even technical or unintentional violations can create significant exposure—making SRDP a critical compliance tool.

When to Use the SRDP

Bob explains that organizations should consider using SRDP when:

• A violation is identified through auditing or monitoring
• There is a reasonable belief that Stark noncompliance occurred
• The financial impact can be calculated

However, he emphasizes that not every issue requires immediate disclosure—careful evaluation is essential before proceeding.

Step One: Do Your Homework

One of the most important takeaways from this episode is the need to fully investigate before taking action.

Bob provides that organizations should:

• Conduct a detailed internal review
• Identify the scope and duration of the issue
• Quantify any overpayments
• Determine whether a Stark exception may apply

Rushing into disclosure without a clear understanding of the facts can weaken an organization’s position.

The Role of Legal Counsel

Bob strongly emphasizes the importance of working with experienced Stark Law counsel.

Legal advisors can:

• Evaluate whether SRDP is the appropriate path
• Assist with preparing the submission
• Help shape the narrative presented to CMS
• Support negotiation of settlements

Given the complexity of Stark Law, professional guidance is essential.

Settlement and Resolution

One of the key benefits of SRDP is the opportunity to negotiate a reasonable settlement.

Bob explains that:

• CMS has discretion to reduce repayment amounts
• Settlements are often lower than full exposure
• The process allows organizations to demonstrate good faith

This makes SRDP an important option for mitigating potential liability.

The Risk of Doing Nothing

Bob also discusses the risks of ignoring a known issue or “waiting it out.”

This approach can lead to:

• Significant repayment obligations
• Civil monetary penalties
• Exposure under the False Claims Act
• Reputational harm

In contrast, voluntary disclosure demonstrates transparency and a commitment to compliance.

Alternatives to SRDP

Bob notes that SRDP is not always the only option.

Depending on the situation, organizations might consider:

• Refunding overpayments without formal disclosure
• Taking corrective internal actions
• Evaluating other regulatory pathways

Choosing the right approach requires careful analysis.

Practical Considerations

Bob highlights several real-world considerations when pursuing SRDP:

• Detailed documentation is required, including financial analysis
• The process can be lengthy and resource-intensive
• Accuracy and consistency are critical

Organizations should be prepared for ongoing interaction with CMS throughout the process.

Practical Takeaways

The key takeaway from this episode is that how you respond to a Stark Law issue can significantly impact the outcome. Organizations should:

• Conduct thorough internal investigations
• Engage experienced legal counsel
• Carefully assess whether SRDP is appropriate
• Act transparently and proactively when necessary
• Be prepared for a detailed and extended review process

Final Thoughts

This episode underscores a critical compliance principle: it’s not just about avoiding mistakes—it’s about how you respond when they happen.

The SRDP provides a structured way to address Stark Law violations, reduce exposure, and demonstrate good faith. When used correctly, it can be a valuable tool for navigating complex compliance challenges.

Click here to listen to this Stark Integrity Podcast Episode:
https://podcasts.apple.com/us/podcast/how-to-use-the-self-referral-disclosure-protocol-srdp/id1588939373?i=1000575609765&l=fr-FR