Upcoming Requirements for SNF Providers
On September 24, 2024, the Centers for Medicare & Medicaid Services (“CMS”) announced that all certified Skilled Nursing Facility (“SNF”) and Nursing Facility (“NF”) providers will receive off-cycle provider enrollment revalidation notices beginning in October 2024. This is in accordance with new reporting requirements under a recently issued CMS Final Rule titled “Medicare and Medicaid Programs; Disclosures of Ownership and Additional Disclosable Parties Information for Skilled Nursing Facilities and Nursing Facilities; Medicare Providers’ and Suppliers’ Disclosure of Private Equity Companies and Real Estate Investment Trusts” (88 FR 80141).
The Rule, finalized in November 2023, mandates the disclosure of detailed ownership information, with a particular focus on private equity (“PE”) firms and real estate investment trusts (“REITs”).
Key Points from the September 24 Announcement:
- Revalidation Notices: These will be issued between October and December 2024 to ALL CMS-certified SNF providers. Upon receiving a notice, SNF providers will have 90 days to submit the required ownership information to the Provider Enrollment, Chain, and Ownership System (“PECOS”) to keep their Medicare enrollment active.
- Mandatory Form CMS-855A: As of October 1, 2024, all SNF providers must use the updated Form CMS-855A for key transactions, including:
- Initial enrollment
- Revalidations
- Reactivations
- Changes of ownership (CHOW)
Additionally, the updated CMS-855A form includes a new SNF-specific appendix to capture the detailed information required under the new rule. SNFs must now disclose more information than ever before, particularly regarding ownership, management, and relationships with private equity and REITs.
CMS Final Rule: What SNF Operators Need to Know
The Final Rule, published on November 17, 2023, aims to enhance transparency within the healthcare sector, particularly focusing on the ownership and operational structures of SNFs and NFs. Below are the key provisions of the rule:
- Ownership Transparency: SNFs and NFs are required to disclose detailed information regarding their ownership, management, and operations. This includes identifying all parties with operational or financial control, as well as financial stakeholders like PEs and REITs.
- Additional Disclosable Parties: The rule requires disclosure of individuals or entities that exert significant control or provide substantial financial support to the facility. These disclosures are intended to capture influential entities that may not be listed as direct owners but still wield significant influence over the facility’s operations.
- Private Equity and REIT Disclosures: Facilities must report any relationships with private equity firms or REITs. The goal is to assess the potential impact of these ownership structures on patient care, financial stability, and the associated risks.
- Medicare Providers and Suppliers Disclosure: Beyond SNFs and NFs, the rule applies to all Medicare providers and suppliers. They must now disclose any involvement of PEs or REITs in their ownership or operations.
Why Compliance Is Critical—And How Frier Levitt Can Help
Navigating these new requirements can be a daunting task for providers, especially as CMS ramps up its oversight of ownership structures in the healthcare industry. Missing deadlines or providing incomplete information can result in penalties, disruptions of operations, or, worse—loss of Medicare participation.
Frier Levitt is here to assist. Our team of experienced healthcare attorneys specializes in helping healthcare providers comply with complex CMS regulations. We can help you:
- Prepare and submit your revalidation forms and ensure accurate disclosures.
- Navigate the new Form CMS-855A, including the SNF-specific appendix for ownership information.
- Ensure compliance with all ongoing reporting obligations under the new CMS rules.
Don’t Delay: Contact Frier Levitt for Help
Mandatory revalidation notices start going out October 2024, and compliance is not optional.
Contact Frier Levitt today to ensure your facility is prepared to meet these stringent new CMS requirements. With extensive experience in regulatory compliance, Frier Levitt is your trusted partner for navigating complex changes in healthcare regulation.
