Other Changes Related to CHOW - RO Procedures

3210.4 - Other Changes Related to CHOW - RO Procedures (Rev. 24, Issued: 01-26-07; Effective: 10-01-05; Implementation: 01-26-07) The new owner of a provider has the opportunity to change the provider's fiscal reporting period. The provider sends a written request to its fiscal intermediary. The fiscal intermediary reviews the request to determine if good cause exists, and will either approve or deny the request. See §3210.4B. There are also some instances in which the RO must assign a different provider number. See §3210.4C. 3210.4A - New Owner Requests Different Intermediary (Rev. 24, Issued: 01-26-07; Effective: 10-01-05; Implementation: 01-26-07) All participating providers that change ownership and accept assignment of the existing provider agreement will continue with the same fiscal intermediary that served the previous owner. If the new owner does not accept assignment of the provider agreement, the new provider will be treated as a new applicant to the Medicare program and once all Federal requirements have been met, a new provider agreement with a new provider number will be issued to the new owner. The new owner will then be assigned to the local designated FI. For CORFs, CMHCs, OPT facilities, rehabilitation facilities, and ESRD facilities, please refer to §3210.3. 3210.4B - New Owner Sets Different Fiscal Reporting Period (Rev. 24, Issued: 01-26-07; Effective: 10-01-05; Implementation: 01-26-07) At the time of a CHOW, the new owner must select its cost reporting year for purposes of reimbursement under the program. The new owner may file its initial cost report covering a period of at least 1 month of provider operations under the program, but no more than 13 months of provider operations under the program. The SA reports to the RO what cost reporting year the new owner has selected for use, and the RO indicates the selected cost reporting year on Form CMS-2007. Subsequent requests for changes in the fiscal reporting period must be made in writing by the provider to the FI. A change in the cost reporting period will be made only after the FI has established good cause. Good cause exists if there is a good reason or justifiable purpose in seeking a change in the cost reporting period. Neither the RO nor the SA can change the cost reporting year of a provider. 3210.4C - New Provider Number Must Be Issued (Rev. 1, 05-21-04) In most cases, the identification number previously assigned to the provider organization stays with the provider organization, regardless of which legal entity is the owner. A new number is not assigned based on a CHOW. There are exceptions, however. These exceptions involve cases in which the form of the provider number indicates a particular status of the provider or supplier to which it is assigned, and that status has changed as a result of the CHOW. For example, a hospital-based ESRD facility becomes freestanding or vice versa. The RO should note in the CHOW notice letter that one identification number is being retired effective with the CHOW date and a new one is being issued based on the change in provider/supplier status. The RO also includes this notice on Form CMS-2007. Before issuing a CHOW acknowledgement letter, the RO should review §2779, “RO Assignment of Provider and Supplier Identification Numbers,” to be sure the previously- assigned identification number continues to be appropriate. For additional instructions regarding provider identification numbers in merger and CHOW situations, see §2779. Following are the most likely examples of the need to issue a new identification number as a result of a CHOW: 1 - ESRD An ESRD facility can be classified as hospital-based and be located on the hospitals’ premises (having an identification number in the series 00-2300 through 00-2499), as a hospital satellite off the hospitals’ premises (having an identification number in the series 00-3500 through 00-3699), or as non-hospital/independent (having an identification number in the series 00-2500 through 00-2899). If the ESRD facility’s classification changes as a result of a CHOW, the RO retires the facility’s original number and issues a new number in the appropriate form, effective with the CHOW date. If the facility’s location changes as a result of a CHOW, the RO has the SA conduct a survey of the new location. 2- RHC A RHC can be classified as freestanding (having an identification number in the series 00-3800 through 00-3974 or 8900-8999), or as provider-based (having an identification number in the series 00-3975 through 00-3999, 00-3400 through 00-3499, or 00-8500 through 00-8899). If the RHC’s classification changes as a result of a CHOW, the RO retires the original number and issues a new number in the appropriate form, effective with the CHOW date.