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