State Operations Manual (Pub. 100-07), Ch. 3 § 4

Close of Business

Last amended: 2020Year: 2020Length: 465 wordsOfficial source
4 - Close of Business The provider permanently ceased all business (Medicare and non-Medicare operations). 3046B - Decision by Provider or Supplier to Remain in the Medicare Program (Rev. 202, Issued: 06-19-20, Effective: 06-19-20, Implementation: 07-27-20) If a provider or supplier changes its mind after requesting termination, the SA or MAC secures a written statement to document the provider/supplier file to prevent any future misunderstanding. If the voluntary termination has not already taken place, the MAC sends a letter to the provider rescinding its voluntary termination. Copies are sent to the SA, SMA, and RO. If the provider’s or supplier’s request is received after the effective date of the voluntary termination, the MAC treats the request as an initial request to participate in the Medicare program. 3046C - Notice to Public (Rev. 202, Issued: 06-19-20, Effective: 06-19-20, Implementation: 07-27-20) In voluntary termination cases, the provider or supplier is obligated to notify the public of the effective termination date. An exception to the requirement for public notice is made when the MAC or SA receives retroactive notice of the close of a business. If the MAC learns that the provider does not intend to comply with the requirement for a public notice, where required, the MAC should assume the responsibility. The required public notice should be published on the CMS website as soon as possible after the provider receives the MAC’s termination letter, and, if time permits, not less than 15 calendar days before the effective termination date. When a supplier of services is voluntarily terminating program participation, public notice by either the supplier or the MAC or RO’s office is optional. However, such a notice is to be published for RHCs, ASCs, and FQHCs. 3046D - Effective Date of Voluntary Termination (Rev. 202, Issued: 06-19-20, Effective: 06-19-20, Implementation: 07-27-20) The effective date of termination is the date business ceased (if there is closure) and should allow sufficient lead-time to notify CMS components and to give the public notice of the termination. If the provider’s request does not specify an acceptable termination date, CMS sets the date (42 CFR 489.52(b)). This date cannot be more than 6 months after the provider’s request is dated. If a retroactive termination date is requested, CMS honors it, provided there were no Medicare beneficiaries receiving services from the facility on or after the requested termination date. In setting an effective termination date that is less than 6 months in the future, the RO must be assured that it would not unduly disrupt the services to the community or otherwise interfere with the effective and efficient administration of the health insurance program. In making this determination, CMS considers the availability of other facilities in the area. In the case of a closure, the effective date is the actual date of closing.
State Operations Manual (Pub. 100-07), Ch. 3 § 4: Close of Business | Justis AI