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

A change in ownership of a nursing facility as a result of an asset transfer requires the executionof a new Provider Agreement, new enrollment application and assignment of a new providernumber. Notification of the change is required to be submitted, in writing, to BMS 90 days priorto the effective date of the change of ownership.A change of ownership as a result of a transfer of corporate stock or the merger of anothercorporation into the provider corporation does not constitute a change of ownership for acorporation. A stock transfer of a nursing facility without a change in administrative personnel ofthat facility does not require the execution of a new Provider Agreement; however, theenrollment packet must be updated to identify all interested parties for the exclusions list.The governing body must comply with West Virginia law when changing ownership, mergingcorporations or transferring corporate stock. Partnerships are governed in West Virginia by theWest Virginia Uniform Partnership Act. This act is codified at WV Code 47B-1-1et seq.Effect on the provider agreement of a change of ownership:An agreement is subject to all applicable statutes and regulations and to the terms andconditions under which it was originally issued including, but not limited to, the following:1. Any existing plan of correction.2. Compliance with applicable health and safety standards.3. Compliance with the ownership and financial interest disclosure requirements of part420, subpart C of Title 42, Chapter IF of the Code of Federal Regulations and;4. Compliance with Civil Rights requirements set forth in 45 CFR parts 80, 84, and 90 ofthe Code of Federal Regulations See 42 CFR 489,18 (d)Enrollment of a new provider as a result from an asset transfer:A new provider must enroll in Medicaid. Providers are required to submit a complete andaccurate enrollment packet. A change of ownership requires that all parties involved shallcollaborate to ensure that services are billed and paid to the correct owner using the correctprovider number. The effective date of the new owner’s enrollment is determined when theenrollment application is approved by BMS. Providers are required to submit a complete andaccurate enrollment packet and inform The Office of Facility Based and Residential Care unitwithin BMS and BMS’s fiscal agent’s Provider Enrollment Unit of the proposed date of thechange in ownership to ensure a seamless transition. It is recommended that changes ofownership occur at the first of the month. Services rendered prior to the effective date of thechange in ownership will not be payable through Medicaid. However, in cases of a change ofownership of a nursing facility that is dually certified for participation in both Medicare andMedicaid, BMS will follow Medicare policy regarding effective dates of the actual change ofownershipA provider agreement shall not be approved if the owner fails to comply with 42 CFR 455.104and 42 CFR 455.105, which requires the owner to provide information to the BMS fiscal agenton ownership interests and certain business transactions. See also 514.2.6 of this manual.Department of Health and Human Resources Chapter 514: Nursing Facility Services Page 14January 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.