Change of
Ownership
When an organization having a provider agreement undergoes a change of
ownership in accordance with the principles articulated in 42 CFR Part 489 and
§3210 of the State Operations Manual, the agreement with the existing provider
is automatically assigned to the new owner so that there is no interruption in
service. However, a new agreement with updated information must
subsequently be signed and a Form CMS-855A must be submitted by both the old
and new owners. Only if the provider, under the change of ownership,
meets the applicable requirements for approval can the agreement be executed.
For FQHCs, these requirements include PHS approval.
An organization that plans to change ownership must give advance notice of its
intention so that a new agreement can be negotiated or so that the public may
be given sufficient notice in the event that the new owners do not wish to
participate in the Medicare program. A provider that plans to enter into
a lease arrangement (in whole or in part) should also give advance notice of
its intention.
A change of ownership occurs, for example, when:
• In the case of a partnership, there is an addition, removal, or substitution
of a partner unless the partners expressly agree otherwise;
• An incorporated organization merges with an incorporated entity that is
approved by the program and the latter entity is the surviving corporation.
It also occurs when two or more corporate providers consolidate and the
consolidation results in the creation of a new corporate entity;
• An unincorporated organization (a sole proprietorship or partnership) becomes
incorporated; or
• The lease of all or part of an entity constitutes a change of ownership of
the leased portion.
When an organization’s agreement is terminated, whether by the entity or by
CMS, no payment is available to the provider for services it furnishes to
Medicare beneficiaries on or after the effective date of the termination.
No comments:
Post a Comment