The Regional Office notifies the provider/supplier of its termination by letter at least 15 calendar days
before the effective date of the termination. In the case of a hospital with an emergency department
having deficiencies that pose an immediate jeopardy to the health or safety of individuals who
present themselves to the hospital for emergency services, CMS gives the hospital a preliminary
notice that its provider agreement will be terminated in 23 calendar days if it does not correct the
identified deficiencies or refute the finding. CMS gives a final notice of termination, and
concurrent notice to the public, at least 2, but not more than 4, calendar days before the effective
date of termination of the provider agreement. The notice states the reasons for, and the effective date
of, the termination and explains the extent to which services may continue after that date. The notice
also contains information regarding the provider’s/supplier’s right to appeal the termination.
(See 42 CFR 489.53) The only suppliers requiring public termination notices are RHCs (42 CFR
405.2404), ASCs (42 CFR 416.35), and FQHCs (42 CFR 405.2442). Public notices for other
suppliers are optional at the discretion of the Regional Office.
Examples of real termination letters can be found at : https://www.cms.gov/Medicare/Provider-Enrollment-and-Certification/SurveyCertificationGenInfo/Termination-Notices.html
Typically, the termination letter is accompanied by the deficiency report that has triggered their intent to terminate. State Agencies will require the Plan of Correction within 10 days and then revisit the organization to see if they are back in compliance. If the organization is back in compliance, then the termination is abated, and the termination notice is rescinded (examples are also on the above website).
Since the termination notice is a public notice, often the organization will also receive letters from other third-party payers requesting either additional information on the situation or indicating that they will also terminate their partnership on the same date. We encourage organizations to work with their Marketing and Public relations team to develop a communications plan to keep staff and the community informed. This strategy should be developed as a contingency plan to be used in the event of a termination letter being received.
Should an organization reach the point of termination, the State agency typically assumes the responsibility for overseeing and coordinating the transfer of patients out of the organization. This is completed in a very coordinated manner. The State agency will close the organization to admissions about 2 weeks prior to the actual closure. Thereby reducing the number of patients that will require transfer upon the termination date. They will also coordinate with local hospitals to accept patient transfers.
Recommendations:
1) Contact State Agency (SA), Regional Office (RO) and Accrediting Organization (AO) to have one large conference call to discuss the issue that has created the Letter of Termination (Termination Track).
2) Show all efforts that have been already implemented to remove the issue of non-compliance.
3) Show all efforts that will be taken to prevent / sustain compliance in the future
4) Develop in the SA/RO/AO minds that they can be ‘reasonably assured’ that compliance will be sustained.
5) If this has happened without success, then follow the Appeals process outlined below and schedule a hearing with an Administrative Law Judge.
Note:
CMS does not really want to remove/terminate providers from the program. They want to work with providers as much as they possibly can – they just need reasonable assurance that compliance can be sustained.
Reference Material:
§ 489.53 Termination by CMS.
(a) Basis for termination of agreement. CMS may terminate the agreement with any provider if CMS finds that any of the following failings is attributable to that provider, and may, in addition to the applicable requirements in this chapter governing the termination of agreements with suppliers, terminate the agreement with any supplier to which the failings in paragraphs (a)(2), (13) and (18) of this section are attributable:
(1) It is not complying with the provisions of title XVIII and the applicable regulations of this chapter or with the provisions of the agreement.
(2) The provider or supplier places restrictions on the persons it will accept for treatment and it fails either to exempt Medicare beneficiaries from those restrictions or to apply them to Medicare beneficiaries the same as to all other persons seeking care.
(3) It no longer meets the appropriate conditions of participation or requirements (for SNFs and NFs) set forth elsewhere in this chapter. In the case of an RNHCI no longer meets the conditions for coverage, conditions of participation and requirements set forth elsewhere in this chapter.
(4) It fails to furnish information that CMS finds necessary for a determination as to whether payments are or were due under Medicare and the amounts due.
(5) It refuses to permit examination of its fiscal or other records by, or on behalf of CMS, as necessary for verification of information furnished as a basis for payment under Medicare.
(6) It failed to furnish information on business transactions as required in § 420.205 of this chapter.
(7) It failed at the time the agreement was entered into or renewed to disclose information on convicted individuals as required in § 420.204 of this chapter.
(8) It failed to furnish ownership information as required in § 420.206 of this chapter.
(9) It failed to comply with civil rights requirements set forth in 45 CFR parts 80, 84, and 90.
(10) In the case of a hospital or a critical access hospital as defined in section 1861(mm)(1) of the Act that has reason to believe it may have received an individual transferred by another hospital in violation of § 489.24(d), the hospital failed to report the incident to CMS or the State survey agency.
(11) In the case of a hospital requested to furnish inpatient services to CHAMPUS or CHAMPVA beneficiaries or to veterans, it failed to comply with § 489.25 or § 489.26, respectively.
(12) It failed to furnish the notice of discharge rights as required by § 489.27.
(13) The provider or supplier refuses to permit copying of any records or other information by, or on behalf of, CMS, as necessary to determine or verify compliance with participation requirements.
(14) The hospital knowingly and willfully fails to accept, on a repeated basis, an amount that approximates the Medicare rate established under the inpatient hospital prospective payment system, minus any enrollee deductibles or copayments, as payment in full from a fee-for-service FEHB plan for inpatient hospital services provided to a retired Federal enrollee of a fee-for-service FEHB plan, age 65 or older, who does not have Medicare Part A benefits.
(15) It had its enrollment in the Medicare program revoked in accordance to § 424.535 of this chapter.
(16) It has failed to pay a revisit user fee when and if assessed.
(17) In the case of an HHA, it failed to correct any deficiencies within the required time frame.
(18) The provider or supplier fails to grant immediate access upon a reasonable request to a state survey agency or other authorized entity for the purpose of determining, in accordance with § 488.3, whether the provider or supplier meets the applicable requirements, conditions of participation, conditions for coverage, or conditions for certification.
(b)Termination of agreements with certain hospitals. In the case of a hospital or critical access hospital that has an emergency department, as defined in § 489.24(b), CMS may terminate the provider agreement if –
(1) The hospital fails to comply with the requirements of § 489.24 (a) through (e), which require the hospital to examine, treat, or transfer emergency medical condition cases appropriately, and require that hospitals with specialized capabilities or facilities accept an appropriate transfer; or
(2) The hospital fails to comply with § 489.20(m), (q), and (r), which require the hospital to report suspected violations of § 489.24(e), to post conspicuously in emergency departments or in a place or places likely to be noticed by all individuals entering the emergency departments, as well as those individuals waiting for examination and treatment in areas other than traditional emergency departments, (that is, entrance, admitting area, waiting room, treatment area), signs specifying rights of individuals under this subpart, to post conspicuously information indicating whether or not the hospital participates in the Medicaid program, and to maintain medical and other records related to transferred individuals for a period of 5 years, a list of on-call physicians for individuals with emergency medical conditions, and a central log on each individual who comes to the emergency department seeking assistance.
(c) Termination of agreements with hospitals that fail to make required disclosures. In the case of a physician-owned hospital, as defined at § 489.3, CMS may terminate the provider agreement if the hospital failed to comply with the requirements of § 489.20(u) or (w). In the case of other participating hospitals, as defined at § 489.24, CMS may terminate the provider agreement if the participating hospital failed to comply with the requirements of § 489.20(w).
(d) Notice of termination –
(1) Timing: basic rule. Except as provided in paragraphs (d)(2) and (d)(3) of this section, CMS gives the provider notice of termination at least 15 days before the effective date of termination of the provider agreement.
(2) Timing exceptions: Immediate jeopardy situations –
(i) Hospitals. If CMS finds that a hospital is in violation of § 489.24(a) through (f), and CMS determines that the violation poses immediate jeopardy to the health or safety of individuals who present themselves to the hospital for emergency services, CMS –
(A) Gives the hospital a preliminary notice indicating that its provider agreement will be terminated in 23 days if it does not correct the identified deficiencies or refute the finding: and
(B) Gives a final notice of termination, and concurrent notice to the public, at least 2, but not more than 4, days before the effective date of termination of the provider agreement.
(ii) Skilled nursing facilities (SNFs). For an SNF with deficiencies that pose immediate jeopardy to the health or safety of residents, CMS gives notice at least 2 days before the effective date of termination of the provider agreement.
(iii) Home health agencies (HHAs). For an HHA with deficiencies that pose immediate jeopardy to the health and safety of patients, CMS gives notice to the HHA at least 2 days before the effective date of termination of the provider agreement.
(3) Notice of LTC facility closure. In the case of a facility where CMS terminates a facility’s participation under Medicare or Medicaid in the absence of immediate jeopardy, CMS determines the appropriate date for notification.
(4) Content of notice. The notice states the reasons for, and the effective date of, the termination, and explains the extent to which services may continue after that date, in accordance with § 489.55.
(5) Notice to public. CMS concurrently gives notice of the termination to the public.
(e) Appeal by the provider. A provider may appeal the termination of its provider agreement by CMS in accordance with part 498 of this chapter.
Appeals:
§ 498.5 Appeal rights.
(a) Appeal rights of prospective providers.
(1) Any prospective provider dissatisfied with an initial determination or revised initial determination that it does not qualify as a provider may request reconsideration in accordance with § 498.22(a).
(2) Any prospective provider dissatisfied with a reconsidered determination under paragraph (a)(1) of this section, or a revised reconsidered determination under § 498.30, is entitled to a hearing before an ALJ.
(b) Appeal rights of providers. Any provider dissatisfied with an initial determination to terminate its provider agreement is entitled to a hearing before an ALJ.
(c) Appeal rights of providers and prospective providers. Any provider or prospective provider dissatisfied with a hearing decision may request Departmental Appeals Board review and has a right to seek judicial review of the Board’s decision.
(d)Appeal rights of prospective suppliers.
(1) Any prospective supplier dissatisfied with an initial determination or a revised initial determination that its services do not meet the conditions for coverage may request reconsideration in accordance with § 498.22(a).
(2) Any prospective supplier dissatisfied with a reconsidered determination under paragraph (d)(1) of this section, or a revised reconsidered determination under § 498.30, is entitled to a hearing before an ALJ.
(e)Appeal rights of suppliers. Any supplier dissatisfied with an initial determination that the services subject to the determination no longer meet the conditions for coverage, is entitled to a hearing before an ALJ.
(f)Appeal rights of suppliers and prospective suppliers.
(1) Any supplier or prospective supplier dissatisfied with the hearing decision may request Departmental Appeals Board review of the ALJ’s decision.
(2) A supplier or prospective supplier dissatisfied with an ALJ decision may request Board review and has a right to seek judicial review of the Board’s decision.
(g)Appeal rights for certain practitioners. A physical therapist in independent practice or a chiropractor dissatisfied with a determination that he or she does not meet the requirements for coverage of his or her services has the same appeal rights as suppliers have under paragraphs (d), (e) and (f) of this section.
(h)Appeal rights for nonparticipating hospitals that furnish emergency services. A nonparticipating hospital dissatisfied with a determination or decision that it does not qualify to elect to claim payment for all emergency services furnished during a calendar year has the same appeal rights that providers have under paragraph (a), (b), and (c) of this section.
(i)Appeal rights for suspended or excluded practitioners, providers, or suppliers.
(1) Any practitioner, provider, or supplier who has been suspended, or whose services have been excluded from coverage in accordance with § 498.3(c)(2), or has been sanctioned in accordance with § 498.3(c)(3), is entitled to a hearing before an ALJ.
(2) Any suspended or excluded practitioner, provider, or supplier dissatisfied with a hearing decision may request Departmental Appeals Board review and has a right to seek judicial review of the Board’s decision by filing an action in Federal district court.
(j)Appeal rights for Medicaid ICFs/IID terminated by CMS.
(1) Any Medicaid ICF/IID that has had its approval cancelled by CMS in accordance with § 498.3(b)(8) has a right to a hearing before an ALJ, to request Departmental Appeals Board review of the hearing decision, and to seek judicial review of the Board’s decision.
(2) The Medicaid agreement remains in effect until the period for requesting a hearing has expired or, if the facility requests a hearing, until a hearing decision is issued, unless CMS –
(i) Makes a written determination that continuation of provider status for the SNF or ICF constitutes an immediate and serious threat to the health and safety of patients and specifies the reasons for that determination; and
(ii) Certifies that the facility has been notified of its deficiencies and has failed to correct them.
(k)Appeal rights of NFs. Under the circumstances specified in § 431.153 (g) and (h) of this chapter, an NF has a right to a hearing before an ALJ, to request Board review of the hearing decision, and to seek judicial review of the Board’s decision.
(l)Appeal rights related to provider enrollment.
(1) Any prospective provider, an existing provider, prospective supplier or existing supplier dissatisfied with an initial determination or revised initial determination related to the denial or revocation of Medicare billing privileges may request reconsideration in accordance with § 498.22(a).
(2)CMS, a CMS contractor, any prospective provider, an existing provider, prospective supplier, or existing supplier dissatisfied with a reconsidered determination under paragraph (l)(1) of this section, or a revised reconsidered determination under § 498.30, is entitled to a hearing before an ALJ.
(3)CMS, a CMS contractor, any prospective provider, an existing provider, prospective supplier, or existing supplier dissatisfied with a hearing decision may request Board review, and any prospective provider, an existing provider, prospective supplier, or existing supplier has a right to seek judicial review of the Board’s decision.
(4)Scope of review. For appeals of denials based on § 424.530(a)(10) of this chapter related to temporary moratoria, the scope of review will be limited to whether the temporary moratorium applies to the provider or supplier appealing the denial. The agency’s basis for imposing a temporary moratorium is not subject to review.
(m)Appeal rights of an individual who is the administrator of a SNF or NF. An individual who is the administrator of a SNF or NF who is dissatisfied with the decision of CMS to impose sanctions authorized under § 488.446 of this chapter is entitled to a hearing before an ALJ, to request Board review of the hearing decision, and to seek judicial review of the Board’s decision.
(n)Appeal rights of individuals and entities on preclusion list.
(1) Any individual or entity that is dissatisfied with an initial determination or revised initial determination that they are to be included on the preclusion list (as defined in § 422.2 or § 423.100 of this chapter) may request a reconsideration in accordance with § 498.22(a).
(2) If CMS or the individual or entity under paragraph (n)(1) of this section is dissatisfied with a reconsidered determination under paragraph (n)(1) of this section, or a revised reconsidered determination under § 498.30, CMS or the individual or entity is entitled to a hearing before an ALJ.
(3) If CMS or the individual or entity under paragraph (n)(2) of this section is dissatisfied with a hearing decision as described in paragraph (n)(2) of this section, CMS or the individual or entity may request Board review and the individual or entity has a right to seek judicial review of the Board’s decision.
Additional Resources
Overview_of_termination_procedures
Schedule-of-Termination-Procedures
State-Operations-Manual_Chpt2-CertificationProcess