The U.S. Department of Health and Human Services’ Centers for Medicare and Medicaid Services (CMS) has issued a final rule that mandates nursing facilities to disclose additional ownership information. The rule will become effective on November 17, 2023 and will require Medicare skilled nursing facilities (SNFs) and Medicaid nursing facilities (Facilities) to further detail information about ownership, management and other aspects on Form CMS-855A (Full Details).
This final directive not only requires increased transparency in ownership information, but also incorporates new definitions of “private equity company” and “real estate investment trust” as related to Medicare enrollment.
Historically, the CMS has encountered difficulties with understanding the complete ownership structure of the facilities. These challenges were mainly due to a lack of data and oversight, which made it tough to determine the extent of care provided by these facilities. With the new norms in place, it is anticipated that such obstacles will be mitigated, fostering better transparency and trust in the sector.
As legal professionals working in relevant industries, it is crucial to understand and navigate these changes adeptly. The rule’s implications could greatly influence the operational aspects of nursing facilities, and impact decisions concerning ownership and management. Therefore, a comprehensive understanding of this new regulation is of utmost importance for healthcare service providers, legal professionals, and other stakeholders involved in the operations of these facilities.