23 Miss. Code. R. 200-4.3

Current through December 10, 2024

Rule 23-200-4.3 - Change of Ownership

A. A change of ownership of a provider/facility as defined by the Division of Medicaid includes, but is not limited to: inter vivos gifts, purchases, transfers, lease arrangements, cash and/or stock transactions or other comparable arrangements whenever the person or entity acquires or controls a majority interest of the facility or service. The new owner, upon consummation of the transaction effecting the change of ownership, shall, as a condition of participation, assume liability, jointly and severally, with the prior owner for any and all amounts that may be due to the Medicaid program.

B. The new ownership agreement shall be subject to any restrictions, conditions, penalties, sanctions or other remedial actions taken by the Division of Medicaid, the state agency or the federal agency against the prior owner of the facility.

C. The agreement will also remain subject to all applicable statutes and regulations, including, but not limited to:

1. Any statement of deficiencies cited by the State Agency that are not in substantial compliance, including any existing plan of correction,

2. Any expiration date,

3. Compliance with applicable health and safety standards,

4. Compliance with ownership and financial disclosure requirements, and

5. Compliance with civil rights and the rights of individuals with developmental disability requirements.

D. A provider/facility that undergoes a change of ownership must:

1. Notify the Division of Medicaid within thirty-five (35) days after any change in ownership through the submission of:

a) A complete Mississippi Medicaid Provider Application Packet, and

b) Proof of change of ownership such as a bill-of-sale or Medicare Tie-In Notice.

2. Receive a new taxpayer identification segment for the new owner with the provider number remaining unchanged.

3. Comply with all applicable Mississippi Department of Health requirements for changes of ownership [Refer to 15 Miss. Admin. Code. Pt 16, Subpart 1, Rule 49.2.6 and 15 Miss. Admin. Code Pt. 9, Subpart 91, Appendices.]

E. When there is a change of ownership or retirement/closure, a provider must continue to maintain all Medicaid beneficiary records for at least six (6) years, unless an alternative method for maintaining the records has been established in writing, and approved by the Division of Medicaid as required by Health Insurance Portability and Accountability Act of 1996 (HIPAA). [Refer to Part 200, Chapter 1, Rule 1.3, Maintenance of Records.]

F. The following are examples of changes of ownership. This list is not exhaustive. Providers who are unsure of whether a transaction constitutes a change of ownership should contact the Division of Medicaid's Office of Provider Enrollment. Examples include:

1. Changes in type of organization (ex. Partnership to limited liability company, or single proprietorship to organization),

2. Mergers, when a new organization is formed and the merging companies are non-surviving,

3. Consolidation of two or more corporations resulting in a new corporate entity,

4. Changes in partnership, including the removal, addition, or substitution of one or more individuals as partners (under Mississippi law, these actions result in dissolution of an older partnership and creation of a new one),

5. Transfers between different levels of government, such as city to county, state to county, etc., and

6. Transfer (sale, gift, exchange of stock) that results in a fifty (50) percent or more change.

23 Miss. Code. R. 200-4.3

42 C.F.R. §§ 455.104, 489.18; Miss. Code Ann. §§ 41-7-173, 43-13-121.

Amended 9/1/2020