Dec 15, 2020 / by OsmondMarketing / No Comments

As part of the Inpatient Prospective Payment System (“IPPS”) end-of-procedure rule of August 14, 2017, the Centers for Medicare and Medicaid (“CMS”) revised the requirements for public notice of termination of Medicare providers. The verity decision opens the door to the sale of agreements from public suppliers and related assets by suppliers who, because of the supplier`s responsibility to the government, have not been able to sell their assets or sell them at fair value. A version of this article, entitled “Medicaid, Medicare Providers Bankruptcy Agreements,” was published online by The Daily Record on July 30, 2020. The Bankruptcy Court authorized the sale against objection from the California Department of Health Care Services (DHCS). DHCS argued that Verity`s Medicaid supplier agreements should not be allocated to free and free money owed by DHCS, since a contract is a performance contract, that is, a contract in which the essential obligations of both parties are not fulfilled, and another part of the bankruptcy law provides that a performance contract can only be awarded if it is accepted first by a debtor. all defaults on the contract are immediately repaired. However, if the same asset sale occurs in the event of bankruptcy, a recent decision has decided that a Medicaid provider agreement and hence a Medicare supplier agreement can be sold “freely and clearly” of hereditary liability under the Bankruptcy Act. As of the date of entry into force, the landlord confers on the tenant all the rights, titles and interests of the landlord to the landlord`s Medicare supplier number and the lessor`s Medicare provider contract. In the case of a private medical group that provides physicians and non-physician providers with services on behalf of the company, a participation contract binds all providers with respect to the services provided to the group. As a result, group-level updates affect all suppliers and new suppliers in the group who are not necessarily required to submit an entry agreement with their first application for registration. For questions regarding Medicare supplier terminations, please contact Meghan M. Linvill McNab.

In its commentary on the final rule, CMS indicated that this amendment should be consistent with the termination notifications that CMS currently provides for all other suppliers and suppliers and that CMS offers CMS regional offices and suppliers or suppliers the flexibility to issue public notices in a manner that informs the maximum number of individuals and beneficiaries of the Community. This may include, among other things, government messages, websites or local messaging and social media channels. Nor would it exclude a publication in local newspapers. Under current legislation, when a health care provider sells a Medicare or Medicaid provider contract in connection with the sale of health care provider assets, the purchaser of these assets must be liable for amounts owed by the previous owner to the government, such as overpayments and civil fines. Verity Health System of California (Verity) filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Central District of California. Subsequently, Verity sought approval for a sale of the bulk of the assets of four hospitals, including hospital provider agreements. Verity requested that the Bankruptcy Court authorize the sale after a certain section of the Bankruptcy Act, which provides that assets can be sold freely and without any pledge, receivables and other interest, provided certain conditions are met.