State Operations Manual (Pub. 100-07), Ch. 2 § 2024
Hospital Merger/Multiple Campus Criteria
2024 - Hospital Merger/Multiple Campus Criteria
(Rev. 1, 05-21-04)
When two or more hospitals merge, the SA ascertains whether to continue to certify the
hospitals separately or to certify them as a single hospital (i.e., hospital with a main
campus and an additional location). Also, when a hospital establishes an additional
hospital facility, geographically separate but in the same metropolitan area, the SA
determines whether the additional hospital facility will be certified as a separate hospital
or whether it can be considered a single hospital. A hospital may establish an additional
hospital facility so organizationally or geographically separate as to make it impossible to
operate as a multi-campus hospital.
Each location of a single hospital must meet the applicable CoPs. A certification of non-
compliance at the CoP level at any of the hospital locations affects the certification of the
hospital as a whole. Consequently, when noncompliance at the CoP level is found, the
hospital will either be denied participation or terminated from participation in the
Medicare/Medicaid program. When a hospital is to be terminated, the SA follows the
termination procedures contained in §3010 and 3012.
In addition, all locations of a single hospital must comply with applicable State licensure
laws. When it is determined that any of the hospital locations does not comply with State
licensure laws, the hospital as a whole will either be denied participation or terminated
from participation in the Medicare/Medicaid program.
Where two or more previously separate hospitals merge, all locations of the surviving
hospital must meet the criteria found in §2004. In addition, all non-hospital providers of
service under Medicare that state they are part of a single hospital must meet the criteria
for provider based designation in §2004 in order to be treated as a single hospital for
payment purposes.