Skip to main content


U.S. flag
      An official website of the United States government
              Here’s how you know
        Here’s how you knowDot gov**Official websites use .gov**
                 A **.gov** website belongs to an official government organization in the United States.
                  HTTPS**Secure .gov websites use HTTPS**
                 A **lock** (A locked padlock) or **https://** means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. 
  Menu Close
          HHS Search block
    Search
        








  
  
    

  
      

                                      About HHS
    
                        
                              
      
      
      Programs & Services
    
                        
                              
      
      
      Grants & Contracts
    
                        
                              
      
      
      Laws & Regulations Breadcrumb
    Home
                              About
                              Agencies
                              DAB
                              Decisions
                              ALJ Decisions
                              2023 ALJ Decisions
                              Elite Ambulatory and Surgery Center, ALJ Ruling 2023-10 (HHS CRD July 25, 2023)
 Navigate to:
  Departmental Appeals Board (DAB)
    
                                                  
                                                    
            
      
      
      
      About DAB
                                            
            
            Organizational Overview
    
                                                  
                              
            
      
      
      
      Who are the Judges?
    
                                                  
                              
            
      
      
      
      DAB Divisions
    
                                                  
                              
            
      
      
      
      Contact DAB
    
                                                  
                                                    
            
      
      
      
      Filing an Appeal Online
                                            
            
            DAB E-File
    
                                                  
                              
            
      
      
      
      Medicare Operations Division (MOD) E-File
    
                                                  
                                                    
            
      
      
      
      Different Appeals at DAB
                                            
            
            Appeals to DAB Administrative Law Judges (ALJs)
                          
            
            Forms
    
                                                  
                              
            
      
      
      
      Procedures
    
                                                                
                                                    
            
      
      
      
      Appeals to Board
                          
            
            Practice Manual
    
                                                  
                              
            
      
      
      
      Guidelines
    
                                                  
                              
            
      
      
      
      Regulations
    
                                                  
                              
            
      
      
      
      National Coverage Determination Complaints
    
                                                                
                                                    
            
      
      
      
      Appeals to the Medicare Appeals Council (Council)
                          
            
            Forms
    
                                                  
                              
            
      
      
      
      Fully Integrated Duals Advantage (FIDA) Demonstration Project
    
                                                  
                                                    
            
      
      
      
      Alternative Dispute Resolution Services
                                            
            
            Sharing Neutrals
    
                                                  
                              
            
      
      
      
      ADR Training
    
                                                  
                              
            
      
      
      
      Other ADR Services
    
                                                  
                                                    
            
      
      
      
      DAB Decisions
                                            
            
            Board Decisions
    
                                                  
                              
            
      
      
      
      DAB Administrative Law Judge (ALJ) Decisions
    
                                                  
                              
            
      
      
      
      Medicare Appeals Council (Council) Decisions
    
                                    
                              
            
      
      
      
      Stakeholder Feedback
    
                                                  
                                                    
            
      
      
      
      Careers
                                            
            
            Open Career Opportunities
    
                                                  
                              
            
      
      
      
      Internships & ExternshipsText resize icon

                    




Elite Ambulatory and Surgery Center, ALJ Ruling 2023-10 (HHS CRD July 25, 2023)








  
  
    

  
      
Department of Health and Human Services 
    DEPARTMENTAL APPEALS BOARD
          Civil Remedies Division





Elite Ambulatory and Surgery Center,(CCN: 26C0001170),Petitioner,v.Centers for Medicare & Medicaid Services
Docket No. C-23-417Ruling No. 2023-10July 25, 2023

        
              
    

      DISMISSALPetitioner, Elite Ambulatory Surgery Center, was an ambulatory surgical center (ASC), located in St. Louis, Missouri.  Until recently, it participated in the Medicare program as a supplier of ambulatory surgical services.  Based on a survey completed on March 24, 2023, the Centers for Medicare & Medicaid Services (CMS) determined that Petitioner did not comply with Medicare Conditions for Coverage.Petitioner appealed, and CMS moves to dismiss the appeal.  With its motion, CMS submitted four exhibits (CMS Exs. 1-4).  Petitioner did not respond to CMS’s motion.  *See* 42 C.F.R. § 498.17 (granting a party 20 days for rebuttal).I grant CMS’s motion and dismiss pursuant to 42 C.F.R. § 498.70(b).  Since filing this appeal, Petitioner lost its license to operate, and, in a separate action, which Petitioner did not appeal, CMS terminated its Medicare participation.  The matter before me is therefore moot.Page 2Discussion***Petitioner has no right to a hearing because, in a separate action, which Petitioner did not appeal, CMS terminated its Medicare participation, rendering moot this challenge to a potential termination.******1***Medicare will pay for services furnished in connection with certain surgical procedures performed at a participating ambulatory surgical center.  Social Security Act (Act) § 1832(a)(2)(F).  An ambulatory surgical center is a distinct entity that 1) operates exclusively for the purpose of providing surgical services to patients not requiring hospitalization; 2) has an agreement to participate in the Medicare program; and 3) meets certain other conditions set forth in 42 C.F.R. Part 416, subparts B and C.  42 C.F.R. §§ 416.2, 416.25; *see* 42 C.F.R. § 498.2 (designating an ASC as a supplier).A supplier dissatisfied with an initial determination to terminate its provider agreement is entitled to an ALJ hearing.  42 C.F.R. § 416.3(b)(6), (17); 42 C.F.R. § 498.5(e).Here, in a preliminary determination letter, dated March 30, 2023, CMS advised Petitioner that, based on a survey completed March 24, 2023, the surgical center was not in compliance with all of the Medicare Conditions for Coverage for ACSs, specifically:  42 C.F.R. §§ 416.43 (surgical services), 416.46 (nursing services), and 416.51 (infection control).  The letter explained that the deficiencies substantially limited the surgical center’s capacity to render adequate care and constituted an immediate and serious threat to the health and safety of patients.  CMS Ex. 1 at 1.The letter advised Petitioner that CMS intended to terminate its provider agreement, effective April 22, 2023.  If, however, the ASC corrected its deficiencies by the termination date, it could avoid termination.  CMS Ex. 1 at 2.The letter also advised Petitioner of its right to request a hearing before an administrative law judge (ALJ) to challenge the finding of noncompliance; it explained that the procedures governing the appeals process could be found at 42 C.F.R. § 498.40 et seq.  CMS Ex. 1 at 3.  Petitioner timely appealed.In the meantime, surveyors returned to the ASC on April 18, 2023, to determine whether the surgical center had corrected its deficiencies.  Based on those survey findings, CMS determined that the surgical center’s deficiencies no longer posed immediate jeopardy toPage 3patients, but that it still did not meet the Conditions for Coverage.2  In fact, CMS determined that the ASC did not meet eight Conditions for Coverage.  In addition to the three cited during the March survey, it did not meet 42 C.F.R. §§ 416.50 (compliance with state law), 416.41 (governing body and management), 416.44 (environment), 416.45 (medical staff), and 416.43 (quality assessment and performance improvement).  CMS Ex. 2 at 1.In a letter dated April 28, 2023, CMS advised Petitioner of its determinations.  The letter warned that the CMS would terminate the ASC’s Medicare participation if it did not achieve compliance by June 28, 2023.  CMS Ex. 2.Thereafter, however, the Missouri Department of Health and Senior Services revoked Petitioner’s license to operate as an ASC, effective at the close of business on April 24, 2023.  CMS Ex. 3.  Because the ASC’s license had been revoked, CMS revoked its Medicare enrollment and provider agreement, effective April 24, 2023.  *See* 42 C.F.R. §§ 416.35(b); 424.535(a)(1) and 424.535(g).  In a letter dated April 28, 2023, CMS advised Petitioner of its determination.  CMS Ex. 4.The April 28 notice letter also advised Petitioner of its appeal rights.  CMS Ex. 4 at 2-3.  Petitioner did not appeal.  CMS’s determination is therefore administratively final and binding.  42 C.F.R. § 498.20(b).  That the ASC has been terminated renders moot Petitioner’s challenge to the noncompliance findings that CMS made based on the March 24 survey.  Even if I were to rule in Petitioner’s favor as to the March 24 survey findings, I could grant it no relief.  Its Medicare participation would remain terminated because it did not appeal CMS’s April 2023 determination that led to its termination.  *See Northlake Nursing and Rehabilitation Center*, DAB CR2271 at 5, 6, 8 (2010), *aff’d*. *Northlake Nursing and Rehabilitation Center*, DAB No. 2376 (2011).Page 4ConclusionCMS has terminated Petitioner’s participation in the Medicare program.  Petitioner did not appeal, so its termination is final and binding.  This renders moot Petitioner’s appeal of the March 24 survey findings.  Petitioner has no right to an ALJ hearing, and this matter must be dismissed.  42 C.F.R. § 498.70(b).  I therefore grant CMS’s motion.Endnotes1 I make this one finding of fact/conclusion of law.2 Because CMS removed the immediate jeopardy determination and gave Petitioner additional time to achieve compliance before it terminated, CMS argues (in the alternative) that CMS rescinded the enforcement remedy, and that Petitioner is not entitled to a hearing since no remedy was imposed.  CMS Br. at 6.  This is simply incorrect; termination is obviously an enforcement remedy, whatever the timeline for imposing it.
  
          /s/
        Carolyn Cozad Hughes

                      Administrative Law Judge Back to top
    Contact HHS
    
                        
                                            
      
      
      Careers
    
                        
                                            
      
      
      HHS FAQs
    
                        
                                            
      
      
      Nondiscrimination NoticeHHS Archive
    
                        
                                            
      
      
      Accessibility Statement
    
                        
                                            
      
      
      Privacy Policy
    
                        
                                            
      
      
      Viewers & PlayersBudget/Performance
    
                        
                                            
      
      
      Inspector General
    
                        
                                            
      
      
      Web Site Disclaimers
    
                        
                                            
      
      
      EEO/No Fear ActFOIA
    
                        
                                            
      
      
      The White House
    
                        
                                            
      
      
      USA.gov
    
                        
                                            
      
      
      Vulnerability Disclosure Policy
        Sign Up for Email Updates

Receive the latest updates from the Secretary, Blogs, and News Releases.

Sign Up
  HHS Headquarters
          200 Independence Avenue, S.W.
                  Washington, D.C. 20201
                  Toll Free Call Center: 1-877-696-6775​ Disclaimer Policy: Links with this icon () mean that you are leaving the HHS website. The Department of Health and Human Services (HHS) cannot guarantee the accuracy of a non-federal website.
                  Linking to a non-federal website does not mean that HHS or its employees endorse the sponsors, information, or products presented on the website. HHS links outside of itself to provide you with further information.
                  You will be bound by the destination website's privacy policy and/or terms of service when you follow the link.
                  HHS is not responsible for Section 508 compliance (accessibility) on private websites. For more information on HHS's web notification policies, see Website Disclaimers.
 Continue
                  Go back