Medicare Claims Processing Manual (Pub. 100-04), Ch. 11 § 20.1.5
Change of Ownership Notice
20.1.5 – Change of Ownership Notice
(Rev. 12847; Issued: 09-13-24; Effective: 06-03-24; Implementation: 10-07-24)
A change of ownership notice is used when the beneficiary will remain with the same hospice, but the
person or group running the hospice is changing. A change of ownership typically occurs when a
Medicare provider has been purchased (or leased) by another organization.
Type of Bill
Enter the appropriate 3-digit numeric type of bill code, according to the following code structure:
81E - Hospice (Non-hospital Based) Change of Ownership
82E - Hospice (Hospital Based) Change of Ownership
Statement Covers Period (From-Through)
The “From” date would be the date the change is effective. No through date is required.
Patient’s Name
The patient’s name is shown with the surname first, first name, and middle initial, if any.
Patient’s Address
The patient’s full mailing address including street name and number, post office box number or RFD,
city, State, and ZIP code.
Patient’s Birth Date
Show the month, day, and year of birth numerically as MM-DD-YYYY.
Patient’s Sex
Show an “M” for male or an “F” for female. This item is used in conjunction with diagnoses and
surgical procedures to identify inconsistencies.
Admission Date
The hospice enters the admission date, which must be the start date of the benefit period in all cases
except when a transfer occurs.
The date of admission may not precede the physician’s certification by more than 2 calendar days,
and is the same as the certification date if the certification is not completed on time.
EXAMPLE
The hospice election date (admission) is 01/01/XX. The physician’s certification is dated 01/03/XX.
The hospice date for coverage and billing is 01/01/XX. The first hospice benefit period ends 90 days
from 01/01/XX. Show the month, day, and year numerically as MM-DD-YY.
Condition Codes
Condition codes are not required on an original change of ownership notice. If the hospice is
correcting the effective date of a change using occurrence code 56, the hospice reports condition code
D0. If the two codes are not reported together, the transfer notice will be returned to the hospice.
Occurrence Codes and Dates
Hospices may submit a change of ownership notice that corrects the effective date of a change
previously submitted in error. In this case, the hospice reports the correct effective date of the change
of ownership in the From Date field and reports the original, incorrect effective date using occurrence
code 56. Medicare systems use the original, incorrect date to find the benefit period to be corrected,
then replaces the effective date of the change of ownership with the corrected information.
Release of Information
Valid values are:
I-Informed consent to release medical information for condition or diagnoses
regulated by Federal Statutes,
Y-Yes, provider has a signed statement permitting release of information.
Provider Number
The hospice enters their NPI. When a hospice agency changes ownership and a new
Medicare provider number issued, the A/B Medicare Administrative Contractor (MAC)
must be notified to update the provider number in the hospice period. This will avoid
mistaking the change as a beneficiary-elected transfer.
Insured’s Name
Send all NOEs with Medicare as the primary payer. Enter the beneficiary’s name on line
A. Show the name exactly as it appears on the beneficiary’s HI card.
Insured’s Unique Identifier
On the same lettered line (A, B, or C) that corresponds to the line on which Medicare
payer information is shown enter the patient’s unique identifier by the health plan for the
insured. For example, if Medicare is the primary payer, enter the MBI. To ensure
accuracy and prevent a delay in the timely receipt or posting the hospice notice of
election, hospices should validate this information using the Health Insurance Portability
and Accountability Act (HIPAA) Eligibility Transaction System (HETS). Only in the
event that the HETS data is not available should the hospice show the number as it
appears on the patient’s HI Card, Social Security Award Certificate, Utilization Notice,
EOMB, Temporary Eligibility Notice, etc., or as reported by the SSO.
Principal Diagnosis Code
CMS accepts only HIPAA approved ICD-9-CM or ICD-10-CM/ICD-10-PCS codes,
depending on the date of service. The official ICD-9-CM codes, which were updated
annually through October 1, 2013, are posted at
http://www.cms.gov/Medicare/Coding/ICD9ProviderDiagnosticCodes/codes.html
The official annual updates to ICD-10-CM and ICD-10-PCS codes are posted at
http://www.cms.gov/Medicare/Coding/ICD10/index.html
Use full diagnosis codes including all applicable digits, up to five digits for ICD-9-CM
and up to seven digits for ICD-10-CM.
Attending Physician I.D.
The hospice enters the name and provider identifier of the attending physician designated
by the patient at the time of election as having the most significant role in the
determination and delivery of the patient’s medical care. The patient’s designated
attending physician could be an independent physician, hospice physician, a nurse practitioner, or
physician assistant. If there is no attending physician listed, then the hospice shall report the hospice
certifying/recertifying physician.
Other Physician I.D.
The hospice enters the name and provider identifier of the hospice physician responsible for
certifying/recertifying that the patient is terminally ill, with a life expectancy of 6 months or less if the
disease runs its normal course. For electronic claims, this information is reported in Loop ID 2310F –
Referring Provider Name.
NOTE: Both the attending physician and other physician fields should be completed unless the
patient’s designated attending physician is the same as the physician certifying/recertifying the
terminal illness. When the attending physician is also the physician certifying/recertifying the
terminal illness, only the attending physician field is required to be populated, the other physician
field would not need to be populated.
Provider Representative Signature and Date
A hospice representative must make sure the required physician’s certification, and a signed hospice
election statement are in the records before signing the Form CMS-1450. A stamped signature is
acceptable.