Increased Nursing Home Ownership Disclosure Requirements for Private Equity Company Investors and Real Estate Investment Trusts
This Briefing is brought to you by AHLA’s Post-Acute and Long Term Services Practice Group.
- May 28, 2024
- Hedy Rubinger , Arnall Golden Gregory LLP
As part of an ongoing effort to improve skilled nursing facility (SNF) safety, the Centers for Medicare & Medicaid Services (CMS) issued the Ownership Transparency Final Rule (Rule). The Rule, which went into effect January 16, 2024, requires SNFs participating in Medicare and Medicaid to disclose additional information about upward chain of ownership, the ownership of related parties with which the SNF has commercial or financial arrangements, and certain parties with administrative, management, or policy-related functions. The disclosures must be provided on an ongoing basis, including within 30 days of a change of ownership or control and 90 days for all other changes (rather than just at initial enrollment). The information from these disclosures will be publicly reported within one year. The Rule’s aim is to provide a more complete background on the organizations and individuals that own, oversee, and facilitate the operations of nursing homes to allow the examination of how different ownership types correlate with care outcomes. The Rule specifically establishes definitions for private equity companies and real estate investment trusts (REITs) that are intended to allow CMS to distinguish between different forms of ownership.
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