CMS Pub. 100-01, ch. 5, § 10.6.5

When an organization having a provider agreement undergoes a change of ownership, the

agreement is automatically assigned to the new owner. A participating provider which

plans to change ownership should give advance notice of its intention so that necessary

action can be taken in the event the newly-owned institution does not wish to participate

in the Medicare program.

A participating provider which plans to enter into a lease arrangement (in whole, or in

part) should also give advance notice of its intention. A change of ownership would

occur for example:

• Where a sole proprietor transfers title to an enterprise to another party;

• Where, in the case of a partnership, the addition, removal, or substitution of a

partner effects a termination of such partnership and creates a successor

partnership or other entity;

• Where an incorporated provider merges with an incorporated institution which is

not participating in the program and the nonparticipating institution is the

surviving corporation or where two or more corporate providers consolidate and

such consolidation results in the creation of a new corporate entity; or

• Where an unincorporated provider (a sole proprietorship or partnership) becomes

incorporated.

Whenever A/B MACs (A) learn of an impending change of ownership, or possible

change of ownership, they inform the regional office immediately. They refer any

questions they may have concerning change of ownership situations to the regional

office.