Medicare General Information, Eligibility and Entitlement Manual (Pub. 100-01), Ch. 5 § 10.6.2
Involuntary Termination, Including SNF Agreement
10.6.2 - Involuntary Termination, Including SNF Agreement
Cancellations
(Rev. 1, 09-11-02)
The Secretary may terminate an agreement (and in the case of a SNF, he/she may
terminate its agreement prior to the close of the specified term of the agreement) with a
provider if it is determined that the provider:
•
Is not complying substantially with the provisions of the agreement or with the
applicable provisions of title XVIII of the Act and regulations;
•
No longer meets the appropriate requirements for participation;
•
Has failed to supply information which is necessary to determine whether
payments are due or were due and the amounts of such payments; or
•
Refuses to permit examinations of fiscal and other records, including medical
records.
The cancellation of a SNF agreement at the close of the predetermined date stated in the
cancellation clause contained in such agreement (see §10.6.2 of this chapter) is viewed as
an involuntary termination of the agreement by the Secretary for cause. Such actions
involve a finding that the SNF has not satisfactorily completed its written plan providing
for the correction of deficiencies with respect to one or more of the standards in the
applicable requirements for participation, or that the facility has not made substantial
effort and progress in correcting such deficiencies.
A provider which is dissatisfied with the Secretary's determination terminating its
agreement is entitled to request a hearing thereon in accordance with the appeals
procedures contained in 42 CFR Part 498. There is no reconsideration step before the
opportunity for a hearing.
NOTE: The involuntary termination of a hospital's approval authorizing it to provide
extended care services, i.e., to be a swing bed facility, does not automatically result in the
involuntary termination of the hospital's agreement relating to the provision of hospital
services.