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CMS Proposes to Expand 36-Month Rule to Hospice Agencies

Ragini A. Acharya, for HuschBlackwell:

The 36-Month Rule, found at 42 C.F.R. § 424.550(b), provides that where there is a change in majority ownership (“CIMO”) of an HHA by sale (including asset sales, stock transfers, mergers and consolidations) within 36 months after the effective date of the HHA’s initial enrollment in Medicare or within 36 months after the HHA’s most recent CIMO, the provider agreement and Medicare billing privileges do not convey to the new owner. Rather, the prospective owner of the HHA must enroll in the Medicare program as a new HHA and obtain a state survey or accreditation from an approved accreditation organization. Notably, an indirect change of ownership does not trigger the 36-Month Rule.