Introduction

10 - Introduction (Rev. 113, Issued: 05-17-13, Effective: 05-17-13, Implementation: 05-17-13) 42 CFR422.550 This chapter describes the regulatory guidance in Subpart L of 42 CFR 422.550, “Effect of Change of Ownership or Leasing of Facilities During Term of Contract.” Please note, although this chapter formulates its guidance as applying to MA organizations, all guidance also applies to Medicare 1876 Cost plans. This chapter: • Defines change of ownership (§10.1, §10.2); • Describes the notification requirements associated with a change of ownership (§20.1, §20.2); • Outlines the requirements for novation agreements (§30.1-§30.4); and • Describes the process for submitting documentation necessary for CMS review (§20.4, §30.4). If a legal entity that contracts with CMS has a change of ownership, the new entity may not necessarily qualify to continue the same Medicare contract with CMS. Organizations should contact their Regional Office Account Manager (AM) for more information about change of ownership requirements.