From Davis Wright Tremain, LLP, by Megan Leonard and Robert G. Homchick,
- On November 17, 2023, the U.S. Department of Health and Human Services published a final rule requiring Medicare and Medicaid nursing facilities to provide more detailed ownership and managerial information on the Medicare Enrollment Application Form CMS-855A.
- Private equity’s role in the healthcare sector has been under scrutiny, with increased transparency and oversight measures being implemented at both the federal and state levels.
- The Final Rule was issued in response to studies linking private equity ownership to a decline in quality of care in nursing homes and SNFs.
- The Final Rule will be effective January 16, 2024 and will require disclosure of ownership and managerial information upon initial enrollment, revalidation, and change of ownership.
- The Final Rule requires nursing homes to disclose information on their governing body, officers, directors, and additional disclosable parties, as well as the organizational structure and relationships of these parties. This information must be reported upon initial enrollment, revalidation, and every five years.