Kansas Administrative Regulations › Agency 30 - KANSAS DEPARTMENT FOR CHILDREN AND FAMILIES › Article 5 - PROVIDER PARTICIPATION, SCOPE OF SERVICES, AND REIMBURSEMENTS FOR THE MEDICAID (MEDICAL ASSISTANCE) PROGRAM › Section 30-5-81t - Hospital change of ownership

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Agency
			 notification and provider agreements.
(1)
			 Each hospital shall notify the agency in writing at least 60 days prior to the
			 effective date of the change of ownership. Failure to do so shall result in the
			 forfeiture of rights to payment for covered services provided to recipients by
			 the previous owner or owners in the 60-day period prior to the effective date
			 of the change of ownership. Failure to notify the agency in writing at least 60
			 days prior to the effective date of the change of ownership shall result in the
			 new owner or owners assuming responsibility for any overpayment made to the
			 previous owner or owners before the effective date of the change of ownership.
			 This shall not release the previous owner of responsibility for such
			 overpayment. This notification requirement may be waived at the discretion of
			 the secretary based upon the showing of good cause by a hospital changing
			 ownership. The new owner or owners shall submit an application to be a provider
			 of services in the program and shall not receive reimbursement for covered
			 services provided to recipients from the effective date of the change of
			 ownership until the date upon which all requirements for participation pursuant
			 to K.A.R. 30-5-59 have been met or until the date upon which an application to
			 be a provider of services in the program is received by the Kansas department
			 of social and rehabilitation services, whichever is later.
(2) At least 60 days before the dissolution
			 of the business entity, the change of ownership of the business entity, or the
			 sale, exchange or gift of 5% or more of the depreciable assets of the business
			 entity, the agency shall be notified in writing. If the business entity fails
			 to provide 60 days written notice, no reimbursement shall be made. This
			 notification requirement may be waived at the discretion of the secretary based
			 upon the showing of good cause by a hospital changing ownership.
(3) If a sole proprietor not incorporated
			 under applicable state law transfers title and property to another party, a
			 change of ownership shall have occurred. An application to be a provider of
			 service shall be submitted to the agency by the new owner and affiliated
			 providers.
(4) Transfer of
			 participating provider corporate stock shall not in itself constitute a change
			 of ownership. Similarly, a merger of one or more corporations with the
			 participating provider corporation surviving shall not constitute a change of
			 ownership. A consolidation of two or more corporations which creates a new
			 corporate entity shall constitute a change of ownership, and an application to
			 be a provider of services shall be submitted to the agency by the new owner and
			 affiliated providers.
(5) Each
			 partnership that is dissolved shall not require a new provider agreement if at
			 least one member of the original partnership remains as the owner of the
			 facility. Each addition or substitution to a partnership or any change of
			 ownership resulting in a completely new partnership shall require that an
			 application to be a provider of services shall be submitted to the agency by
			 the new owner and affiliated providers.
(6) The change of or a creation of a new
			 lessee, acting as a provider of services, shall constitute a change of
			 ownership. An application to be a provider of services shall be submitted to
			 the agency by the new lessee and affiliated providers. If the lessee of the
			 facility purchases the facility, the purchase shall not constitute a change in
			 ownership.