405 IAC 1-20-4 Change of ownership effect

Sec. 4. When there is a change of ownership of a long term care facility, the office will transfer the provider agreement to the transferee subject to the terms and conditions under which it was originally issued and subject to any existing plan of correction and pending audit findings as follows: (1) The transferor and transferee shall reach an agreement between themselves concerning Medicaid reimbursements, underpayments, overpayments, and civil monetary penalties. (2) From the effective date of change of ownership and if all requirements are met, all reimbursements will be made to the transferee, regardless of whether the reimbursement was incurred by a current owner or previous owner. (3) From the effective date of change of ownership, the transferee shall assume liability for repayment to the office of any amount due the office, regardless of whether liability was incurred by a current owner or operator or by a previous owner or operator. (4) Liability of current and previous providers to the office shall be joint and several. (5) A current or previous owner or lessee may request from the office a list of all known outstanding liabilities due the office by the facility and of any known pending office actions against a facility that may result in further liability. (6) For purposes of this section, examples of reimbursements, overpayments, and penalties shall include, but not be limited to, the following: (A) Outstanding claims. (B) Any retro rate adjustment that results in an underpayment or overpayment based upon the transferor's cost report. (C) Amounts identified during past, present, or future audits that pertain to an audit period prior to a change in ownership. (D) Pending or completed surveillance utilization review (SUR) audit. (E) Imposition of penalties due to failure of the provider to be in substantial compliance with applicable federal requirements for nursing facilities participation in the Medicare program or Medicaid. (F) Civil monetary penalties. (G) Amounts established by final administrative decisions.