MDHHS Releases CHOW Proposed Policy Change (SNF)
MDHHS released a proposed policy regarding Medicaid provider agreement assignment with a Change of Ownership (CHOW). The Medicaid policy would make the assignment similar to the Medicare process with the new owner retaining the prior owners National Provider Identifier (NPI). The policy proposed implementation date is June 1, 2022. Comments on this proposed policy are due to MDHHS by April 26, send comments to Ian Lowers at [email protected] .
HCAM will be providing comments on the policy with the greatest concern is the implementation date and sellers that are pending. We will request a much later date for implementation most likely into 2023. Below is selected sections of the proposed policy, if you need to access the entire proposed policy click here.
Nursing Facility CHOW Proposed Policy
When a nursing facility changes ownership, the successive owner can either retain the preceding owner’s NPI or obtain a new NPI. If the successive owner chooses to obtain a new NPI, then they must complete the new enrollment process in the Community Health Automated Medicaid Processing System (CHAMPS) and submit the required disclosure information within 35 days of the Centers for Medicare & Medicaid Services (CMS) established effective date of the change in ownership. If the successive owner decides to retain the preceding owner’s NPI, then the successive owner cannot do a new enrollment. The successive owner’s decision to either retain the NPI or to obtain a new NPI does not impact the automatic assignment of the provider agreement.
On the CMS-established effective date of a nursing facility CHOW, the preceding owner’s provider agreement shall automatically assign to the successive owner. The Medicaid assignment of the provider agreement binds the successive owner to all terms and conditions of the preceding operator’s provider agreement including, but not limited to, liabilities such as Medicaid overpayments and debts, sanctions, and penalties related to the Medicaid program regardless of when they arose.
The successive owner will be held responsible for Medicaid overpayments, debts, and/or other liabilities regardless of sales agreement language between the successive owner and preceding owner. Enforcement of sales agreement language is to be between the parties of that contract, and Medicaid will recover from the successive owner as stated in the Nursing Facility Cost Reporting & Reimbursement Appendix of the MDHHS Medicaid Provider Manual.