Designated Health Service (DHS)
Designated Health Service
Categories of services subject to the physician self-referral prohibition under the Stark Law.
1 min read · Last reviewed May 23, 2026
At a glance
- Category
- Documentation
- Acronym for
- Designated Health Service
- Primary sources
- 2
- Workspace handoff
- compliance binder →
Where this comes up
Providers meet this term in the chart and at the post-visit review — encounter notes, problem lists, medication reconciliation, signed orders, and the time/elements that defend the billed code. If documentation does not support the code, the code does not survive an audit.
Full definition
What it is in practice
42 CFR Part 411 Subpart J lists DHS: clinical lab, PT/OT/SLT, radiology, radiation therapy, DME, parenteral/enteral nutrients, prosthetics/orthotics, home health, outpatient prescription drugs, inpatient and outpatient hospital services.
How it shows up in your practice
Self-referral arrangements involving DHS need to fit a Stark exception. Use the in-office ancillary services exception carefully — it has structural requirements you must meet.
Sources
- 42 CFR Part 411 Subpart J — Starkhttps://www.ecfr.gov/current/title-42/chapter-IV/subchapter-B/part-411/subpart-J
- CMS — Stark Lawhttps://www.cms.gov/medicare/regulations-guidance/physician-self-referral
Document DHS arrangements in the Compliance Binder
Open compliance binder →Related terms
- Compliance ProgramStark LawFederal statute (42 USC 1395nn) prohibiting physicians from referring Medicare/Medicaid patients for designated health services to entities with which the physician has a financial relationship, unless an exception applies.
- Compliance ProgramAnti-Kickback Statute (AKS)Federal criminal statute (42 USC 1320a-7b(b)) that prohibits offering, paying, soliciting, or receiving remuneration to induce or reward referrals for items or services payable by federal health programs.
- Compliance ProgramIn-Office Ancillary Services ExceptionStark Law exception (42 CFR 411.355(b)) permitting referrals for designated health services furnished in the referring physician's office.
D3rx is a healthcare-billing and compliance research aid maintained by D3rx Inc. Articles are drafted by an LLM (Anthropic Claude) against primary HHS, OCR, CMS, eCFR, NIST, and state-regulator publications, and reviewed for restraint and source fidelity by the D3rx team.
Reviewer status: a named credentialed reviewer (CHC, CHPC, or healthcare attorney) is being engaged. Until that engagement is finalized, this page does not claim credentialed review.
Related across the archive
- GlossaryIn-Office Ancillary Services ExceptionStark Law exception (42 CFR 411.355(b)) permitting referrals for designated health services furnished in the referring physician's office.
- GlossaryStark LawFederal statute (42 USC 1395nn) prohibiting physicians from referring Medicare/Medicaid patients for designated health services to entities with which the physician has a financial relationship, unless an exception applies.
- GlossaryAnti-Kickback Statute (AKS)Federal criminal statute (42 USC 1320a-7b(b)) that prohibits offering, paying, soliciting, or receiving remuneration to induce or reward referrals for items or services payable by federal health programs.
- ComplianceStark Law (Physician Self-Referral): Compliance Basics for Designated Health ServicesThe Stark Law is strict-liability, civil-only, and triggers on Medicare claims for designated health services where a financial relationship exists. Here is what Stark actually prohibits, how the exceptions work, and where practices misread the in-office ancillary services exception.
- RegulationStark Law Overview (42 USC 1395nn)Strict-liability prohibition on physician referrals to entities for designated health services payable by Medicare when the physician (or immediate family member) has a financial relationship with the entity, unless an exception applies.
- GlossaryFMV (Fair Market Value)Compensation, rent, or payment terms that reflect what would be paid in an arm's-length transaction.
- GlossaryGroup Practice (Stark)A defined-term group of physicians who share specific operational characteristics making them eligible for certain Stark Law exceptions.
- GlossaryAddendum to Medical RecordA signed and dated note added to a medical record after the original encounter to clarify or supplement documentation.
This glossary entry is a research aid for billing and compliance staff. It does not provide legal, medical, or financial advice and does not replace counsel. References cited link to primary sources at HHS, OCR, CMS, eCFR, NIST, and the relevant payer or industry body.