State Operations Manual (Pub. 100-07), Ch. 10 § 10003.3
Effect of Sanctions/Remedies on HHAs and Hospice Programs that
10003.3 - Effect of Sanctions/Remedies on HHAs and Hospice Programs that
Participate in Medicare via Deemed Status through an Accrediting Organization
(Rev. 221; Issued: 05-10-24; Effective: 05-10-24; Implemetation:05-10-24)
A deemed HHA or hospice program loses its deemed status when a condition-level finding is cited
on a complaint or validation survey. When a condition-level deficiency (ies) is found, the CMS
Location returns oversight of the accredited HHA or hospice program back to the SA until the
HHA or hospice program can demonstrate compliance with the CoPs. During the time that the
SA has jurisdiction over the HHA or hospice program, the SA, not the Accrediting Organization
(AO), will follow the procedures for recommending the imposition of sanctions/remedies, if
appropriate. Once the HHA or hospice program returns to compliance with the Medicare
conditions and has not been terminated, the CMS Location will restore its deemed status and
return oversight to the AO.
AOs are not authorized to impose federal sanctions/remedies. Therefore, HHAs or hospice
programs participating in Medicare through deemed status are not directly subject to
sanctions/remedies by the AO while under jurisdiction of the AO. However, the CMS
location may, after reviewing the AO’s survey findings and related information, authorize the
SA to conduct a focused validation survey to determine whether condition-level deficiencies,
cited by the AO, have been corrected. If deemed status is withdrawn and/or the HHA or
hospice program is placed under the jurisdiction of the SA, as may occur following a
complaint investigation by the SA, the CMS Location may impose alternative
sanctions/remedies on the HHA or hospice program per the usual procedures.