On February 13, 2023, the Centers for Medicare & Medicaid Services (CMS) announced a proposed rule affecting Medicare skilled nursing facilities (SNF) and Medicaid nursing facilities (“Nursing Facilities”).  The proposed rule aims to implement certain aspects of section 6101 of the Affordable Care Act, including changes to ownership information reportable to CMS by Nursing Facilities.

At a broad level, the proposed rule seeks to improve transparency and quality of care in Nursing Facilities, as a result of increased private equity ownership in Nursing Facilities.  The proposed rule would implement a number of changes to a Nursing Facility’s ownership disclosure obligations:

1. Requiring nursing facilities to report each member of the governing body of the Nursing Facility: each person who is an officer, director, member, partner, trustee, or managing employee of the Nursing Facility, and each person or entity who is an additional disclosable party of the Nursing Facility.
2. Requiring nursing facilities to disclose the organizational structure for each additional disclosable party at the Nursing Facility with a description of the relationship between the additional parties and the Nursing Facility.
3. Clarifying provider and supplier Medicare enrollment rules, including increased reporting requirements on Form CMS-855A, initial enrollment and revalidation application, and requiring Nursing Facilities to report changes in ownership within thirty (30) days and all other changes within ninety (90) days.
4. Making reported Nursing Facility data available to the general public and requiring that Nursing Facilities formally attest to reported ownership information.

CMS is currently soliciting comments on a few key issues of the Proposed Rule. Comments may be submitted electronically, by regular mail, or by express or overnight mail, and must be received by April 14, 2023. To learn more about the CMS Proposed Rule, please contact a member of Hinckley Allen’s Senior Living group.