Chapter 514 - Nursing Facility Services - DHHR - State of West ...

voluntary, non-profit, etc. The governing body/designee of each nursing facility must provideBMS and OHFLAC with full and complete information and documentation as to the identity ofthe owner(s) in the enrollment packet as follows:The name and address of each person with an ownership or five percent controllinginterest in the facility or disclosing entity or in any subcontractor in which the disclosingentity has direct or indirect ownership;The name and address of each officer and director, when a nursing facility is organizedas a corporation, must be declared and verified if it is organized as a for-profit entity;The name and address of each partner when a nursing facility is organized as apartnership.Compensation will not be allowed for owners, operators, or their relatives who claim to providesome administrative or other function required to operate the facility, but who do not actuallyprovide said services. Functions claimed to be provided by owners, operators, or their relativeswhich are merely a duplication of services that are already provided by other employees, or arefunctions which should reasonably be expected to be performed by other employees, are notreimbursable.When owners, operators, or their relatives are on salary at a facility, the Medicaid program willreimburse the facility to the extent that said individuals salaries are not excessive (See514.13.27 OWNERS) compared to other individuals who perform the same or similar functionsbut are not owners, operators or their relatives.514.2.6 Change of OwnershipThe following events constitute a change of ownership:1. The removal, addition or substitution of a partner. (Stock Transfer)2. Transfer of title and property to another party by as sole proprietor. (Asset Transfer)3. The merger of a provider corporation into another corporation, or the consolidation oftwo or more corporations resulting in the creation of a new corporation. (Asset Transfer)4. Leasing all or part of a provider facility. (Stock Transfer) See 42 CFR 489.18; 42 CFR431.108; WV Code 31D-11-1101 et seq.; WV Code 47B-1-1 et seq.When there is a change of ownership, the governing body must acquire a Certificate of Need oran exemption as required under West Virginia State law. Refer to WV Code 16-2D-01 et seq.and WV Legislative Rule 65CSR7 for direction on complying with Certificate of Needrequirements in West Virginia. Note that Certificates of Need are nontransferable. The nursingfacility may not bill Medicaid for any health service without first obtaining an approved Certificateof Need.West Virginia Medicaid recognizes two types of changes in ownership, stock transfer and assettransfer.Department of Health and Human Resources Chapter 514: Nursing Facility Services Page 13January 1, 2013DISCLAIMER: This manual does not address all the complexities of Medicaid policies and procedures,and must be supplemented with all State and Federal Laws and Regulations.