Direct Payment by CMS (Hospital and SNF Services)

10.2.3 - Direct Payment by CMS (Hospital and SNF Services) (Rev. 4, 10-01-01) If CMS determines that the HMO/CMP is not carrying out its bill processing operations properly (or does not have the experience or capability to do so in the future), CMS may require the HMO/CMP to elect to have CMS pay the HMO/CMP's hospital and SNF providers directly (Bill Processing Option 1). If the HMO/CMP refuses this election, CMS may decline to enter into a contract or may terminate the contract.