CMS Pub. 100-06, ch. 3, § 130.3

Agreement

(Rev. 13235; Issued: 05-22-25; Effective: 06-23-25; Implementation: 06-23-25)

Assignment of Medicare Provider Agreement:

If the new owner rejects the assignment of the provider agreement, there is a voluntary termination of

the old owners provider agreement on the date of the sale or other transfer. There would be no CHOW

of the Medicare agreement, and the previous owner would still be responsible for any outstanding

overpayments. Contractors follow normal collection processes to recoup any outstanding debt from the

previous owner.

If the new owner wants to participate in the Medicare Program, they must apply as a new provider,

under a new Medicare Provider Agreement. The new provider will not be eligible to receive Medicare

reimbursement for services rendered to beneficiaries before the date CMS approves the new application.

For providers which must undergo a compliance survey, that survey cannot take place until after the

date on which the old owner terminates its Medicare participation and the new owner has begun

providing services.

In the case of the rejection of the provider agreement, the new owner will not be able to participate in

the Medicare Program until a valid provider agreement is issued from CMS. The Contractor seeks

recovery of all overpayments and issues all underpayments to the last owner of record under the

terminated provider agreement.