McKnights Long-Term Care News is reporting that a “stipulation in principle” has been reached with the FTC to temporarily exempt healthcare providers from the rule. In an earlier article, McKnights noted that the FTC has moved the compliance date of the rule to January 2, 2010. The stipulation may arise from the fact that medical groups have sued the FTC seeking the exemption on the basis that the rule “exceeds the powers delegated to it by Congress and that its application to physicians is arbitrary, capricious and contrary to the law”.
Health providers have argued that they should get the same exemptions as lawyers, because the wait for reimbursement would cause them to inappropriately come under the definition of “creditors”, placing onerous burdens on them.
