Posted July 5, 2023
CMS has proposed a new requirement as part of its proposed home health rule for 2023, that would prohibit hospice owners from selling their businesses within 3 years of Medicare enrollment. This is the latest step in the agency’s efforts to improve hospice program integrity following widespread reports of unethical or illegal activity among new providers in several states.
It mirrors a regulation that has existed for several years for home health agencies. The rule forbids any change in majority ownership during the 36 months after initial enrollment, including acquisitions, stock transactions or mergers.
“This requirement is designed to address circumstances under which Medicare provider certification is sought for the sole purpose of selling the certification rather than providing services to beneficiaries,” a National Association for Home Care & Hospice (NAHC) Fact Sheet indicated. “The policy also helps to ensure that when a provider changes ownership that CMS has knowledge as to whether the entity, under new management and ownership, meets the Medicare conditions of participation.”
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