Stark Law Settlements under the Self-Referral Disclosure Protocol (SRDP): How Long and How Much?

Episode Date: October 18, 2023

In this episode of Stark Integrity, Bob Wade (“Captain Integrity”) focuses on a practical and often unavoidable question in Stark Law compliance:

What happens when you discover a violation—and what does it cost to fix it?

The answer often lies in the Self-Referral Disclosure Protocol (SRDP), a voluntary process that allows providers to disclose and resolve actual or potential Stark Law violations with CMS.

What Is the SRDP?

The SRDP was created under the Affordable Care Act to provide a formal pathway for healthcare organizations to:

• Self-disclose Stark Law violations
• Quantify potential overpayment exposure
• Resolve liability directly with CMS

Because the Stark Law is a strict liability statute, even technical or unintentional violations can trigger repayment obligations and penalties.

Why Enter the Process?

As Bob Wade explains, there is a strategic advantage to self-disclosure:

• CMS may settle for less than full potential liability
• Organizations demonstrate good faith and proactive compliance
• It can help mitigate exposure under the False Claims Act

In short:
Owning the issue early is often better than defending it later.

How Long Does It Take?

One of the central questions in the episode is timing.

Historically:

• SRDP settlements could take several years to resolve

However, CMS has recently increased resources and improved processing:

• Some cases are now resolved more quickly—even within the same year in certain situations

That said, timeline variability remains, depending on:

• Complexity of the issue
• Quality of the submission
• CMS review backlog

How Much Do Settlements Cost?

Settlement amounts vary widely—but the data tells an important story.

Across SRDP history:

• Settlements have ranged from just a few dollars to over $2.6 million
• Many fall into more moderate ranges, often significantly below the theoretical exposure

Recent activity shows:

• Increasing volume of settlements
• Continued use of discounted resolution amounts relative to potential liability

The key takeaway:
While SRDP is not cheap, it is often far less costly than non-disclosure.

A Growing Enforcement Focus

CMS has been actively increasing its focus on SRDP resolutions:

• Record numbers of settlements in recent years
• Greater effort to reduce backlog
• Continued emphasis on resolving technical Stark violations

This reflects the reality that:

• Stark violations are often inadvertent but common
• Regulators expect organizations to identify and address them proactively

Practical Takeaways

This episode reinforces a few critical points:

• If you identify a Stark issue, evaluate SRDP early
• Expect variability in both timing and financial outcomes
• Strong documentation and analysis are key to a successful submission
• Self-disclosure can significantly reduce risk and uncertainty

Final Thoughts

The SRDP is not just a regulatory process—it is a risk management tool.

As Bob Wade highlights, the question is not whether issues arise—they will.
The real question is how organizations respond when they do.

Handled correctly, the SRDP can turn a compliance problem into a controlled, manageable resolution.

Click here to listen to this Stark Integrity Podcast Episode:
https://podcasts.apple.com/us/podcast/stark-law-settlements-under-the-self-referral/id1588939373?i=1000631691479&l=fr-FR