The Centers for Medicare & Medicaid Services (CMS) recently finalized their transformational 2024 home health rules, which notably sees the expansion of the home health “36-month rule” to encompass hospice providers. In essence, the revised rule will prohibit any amendments to the majority ownership of a hospice provider during the 36 months following initial Medicare enrollment, or its most recent potency alteration in ownership.
This development, which is outlined in greater detail on the Arnall Golden Gregory LLP website, is critical for hospice providers to consider in their strategic planning. The implications for compliance departments within these entities cannot be understated. Unlike former rules where only a home health agency was concerned, hospice providers will now be involved.
What this signifies is that, following the initial enrollment to Medicare, hospice providers are now obligated to adhere to a stable ownership structure for a minimum of three years. This duration remains valid from the point of the latest significant change in ownership, if applicable.
Hospice providers, with their legal teams, should promptly study the updated ruling in its entirety, comprehend the implications, and align their business strategies to meet the new requirement. It presents a significant shift in how they will have to structure their ownership status going forward. The departure from the former policies necessitates careful analysis, ensuring full regulatory compliance while maintaining the firm’s viability and developmental goals.
This is a considerable advance for hospice providers. While the effect of this rule may affect some more than others, all providers will need to update their compliance programs and reassess their readiness for these changes.
Remember to check for further updates and nuanced details as they may rise, and to ensure you stay informed and prepared for the impact this ruling will undoubtedly have on the hospice sector in the healthcare industry.