On April 29, 2022, CMS published a final rule requiring Accreditation Organizations (AOs) to notify CMS of changes of ownership (CHOWs). Effective June 28, 2022, an AO will need to notify CMS when undergoing or negotiating a CHOW. CMS will also have the authority to review the prospective new AO owner’s ability to perform the tasks necessary to ensure the ongoing effectiveness of the transferred accreditation program(s) and to minimize risk to patient safety. These requirements will affect each AO that accredits providers and suppliers, including those that are enrolled in the Medicare program or enter into a participation agreement with Medicare.

Currently, the regulations governing AOs do not include any provisions related to the CHOW process. Under the current regulations, AOs are not required to notify CMS of pending CHOWs nor does CMS have the authority to approve or deny the transfer of existing CMS-approved accreditation program(s) to a new owner. CMS is generally not made aware of a sale or transfer of an AO until that AO applies for renewal of the accreditation program(s) or unless the AO voluntarily notifies CMS of the CHOW.
According to CMS, “the principles that apply when a Medicare-certified provider or supplier undergoes a CHOW provide a general framework as to how CMS will treat situations involving a CHOW for an AO[.]” However, there are several notable differences. For example, in a CHOW involving a Medicare-certified provider or supplier, the Medicare agreement is automatically transferred to the new owner unless affirmatively rejected by the new owner. In contrast, the AO will need to obtain CMS’s affirmative approval to transfer the existing CMS approval of the AO’s accreditation program to a new owner. CMS noted that this policy reflects its “desire to ensure that an AO’s CHOW does not adversely impact its survey and accreditation procedures[.]”

The final rule is available here.