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US · guidance

CMS Pub. 100-04, ch. 3, § 140.1.8

Mergers

activein force · 2026-08-25 – presentas-observed

If an IRF hospital (or a hospital with an IRF unit) merges with another hospital and the

owner(s) of the merged hospital accept assignment of the IRF hospital’s provider

agreement (or the provider agreement of the hospital with the IRF unit), then the IRF

hospital or IRF unit retains its excluded status and will continue to be paid under the IRF

PPS before and after the merger, as long as the IRF hospital or IRF unit continues to meet

all of the requirements for payment under the IRF PPS. Note that an IRF’s payment status

under the IRF PPS is a Medicare classification status, which cannot be separated from its

host hospital and therefore cannot be merged with another entity outside of the merger

with its host hospital.

If the owner(s) of the merged hospital do not accept assignment of the IRF hospital’s

provider agreement (or the provider agreement of the hospital with the IRF unit), then the

IRF hospital or IRF unit is considered voluntarily terminated and the owner(s) of the

merged hospital may re-apply to the Medicare program to operate a new IRF under the

requirements for new IRFs in §140.1.4 above.

History

(Rev. 2673, Issued: 03-14-13, Effective: 04-22-13, Implementation: 04-22-13)

Provenance

Source
cms.gov
Retrieved
2026-08-25
Edition
iom-2026-08-25
Content hash
762fbd76e2a048d8edeb00497872ce2307485534940b79380217479224dd581b
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