Change of Ownership (CHOW)

CHAP’s Change of Ownership Process

CHAP’s policy and procedures for processing changes of ownership, mergers, and acquisitions ensure accredited organizations’ compliance with CHAP and Centers for Medicare & Medicaid Services (CMS) requirements. CHAP supports buyers and sellers in maintaining accreditation, recognizing that while accreditation is not transferable to a new entity, it does not automatically lapse when an ownership change occurs (SOM 3210).

Medicare Certification

CHAP-accredited providers or suppliers must notify CHAP 30 calendar days prior to the effective date of a Change of Ownership (CHOW). Providers also participating in Medicare Certifications must also submit the applicable Medicare Enrollment Application (Form CMS-855) to the Medicare Administrative Contractor (MAC) indicating whether the owner is accepting or rejecting assignment of the existing Medicare agreement. This decision is a critical step in the CHOW process and will have a significant impact on the new owner’s ability to participate in the Medicare program. The new owner’s decision to accept or reject assignment of an existing Medicare agreement will impact the accrediting organization’s (AO’s) actions regarding a survey following a CHOW.

**CHAP cannot provide any advice or recommendations around accepting or rejecting a provider agreement as part of the CHOW process. Please direct all CHOW questions to the relevant MAC and Regional Office (RO) staff.**