Authority and Conditions of Temporary Management

10007.3 – Authority and Conditions of Temporary Management (Rev. 221; Issued: 05-10-24; Effective: 05-10-24; Implemetation:05-10-24) CMS notifies the HHA or hospice program that a temporary manager is being appointed. The temporary manager must have the authority to hire, terminate, or reassign staff; obligate the provider’s funds; alter provider policies and procedures; and otherwise manage an HHA or hospice program to correct deficiencies identified in the provider’s operation. The HHA’s or hospice program’s management must agree to relinquish authority and control to the temporary manager and to pay his/her salary before the temporary manager can be installed in the HHA or hospice program. A contract or memorandum of understanding should be completed between the temporary manager and the HHA or hospice program prior to the temporary manager beginning any work or incurring any costs. Failure to relinquish authority and control to the temporary manager will result in termination of the HHA or hospice program. The HHA or hospice program cannot retain final authority to approve changes of personnel or expenditures of HHA or hospice program funds and be considered to have relinquished control to the temporary manager. The temporary manager must be given access to all HHA or hospice program bank accounts. If the HHA or hospice program does not relinquish control to the temporary manager and/or provide access to bank accounts and available assets, the HHA or hospice program will be terminated. It should be noted that the HHA’s or hospice program’s governing body remains ultimately responsible for achieving compliance. The responsibility does not transfer to the temporary manager, SA, or CMS. The temporary manager’s salary must be at least equivalent to the prevailing annual salary of HHA or hospice program administrators in the HHA’s or hospice program’s geographic area based on the bureau of labor statistics, plus any additional costs that would have reasonably been incurred by the HHA or hospice program if the temporary manager had been in an employment relationship, e.g., the cost of a benefits package, prorated for the amount of time that the temporary manager spends in the HHA or hospice program. The HHA or hospice program is also responsible for any other costs incurred by the temporary manager in furnishing services under such an arrangement or as otherwise set by the State. Failure to pay the salary and other costs is considered a failure to relinquish authority and control to temporary management and will result in termination of the provider agreement. The State should provide the temporary manager with an appropriate orientation that includes a review of the HHA’s or hospice program’s deficiencies and compliance history. The State may request that the temporary manager periodically report on the actions taken to achieve compliance and, on the expenditures associated with these actions.