CMS SOM App. W, Tag C-0716

through (f) of Part 412 ...

Changes in the size of excluded units (§412.25(b)).]

“(b) Changes in the size of excluded units. Except in the special cases noted at the end

of this paragraph, changes in the number of beds or square footage considered to be

part of an excluded unit under this section are allowed one time during a cost reporting

period if the hospital notifies its Medicare contractor and the CMS RO in writing of the

planned change at least 30 days before the date of the change. The hospital must

maintain the information needed to accurately determine costs that are attributable to

the excluded unit. A change in bed size or a change in square footage may occur at any

time during a cost reporting period and must remain in effect for the rest of that cost

reporting period. Changes in bed size or square footage may be made at any time if

these changes are made necessary by relocation of a unit to permit construction or

renovation necessary for compliance with changes in Federal, State, or local law

affecting the physical facility or because of catastrophic events such as fires, floods,

earthquakes, or tornadoes.”