Change of Ownership


If you are considering the purchase of an existing RHC, you should give Jim a call or drop him an e-mail. He has many years of experience dealing with a variety of CMS Intermediaries and MACs. Purchase of an existing RHC does not necessarily mean you won’t get a State Inspection. Neither does it mean you are able to keep the RHC status.

There are changing interpretations of CMS regulations that can make it impossible for the purchaser of a RHC to keep that RHC designation after the change of ownership takes place.


There are multiple issues that must be dealt with when purchasing a RHC. RHC-specific language should be included in the sales agreement to protect the purchaser from possible future financial liabilities related to the RHC.

Both the seller and the buyer have Medicare forms that must be completed. In addition, a review of the RHC’s cost reports for at least the past three years should be conducted to protect the buyer. The seller must also file a final cost report for the period of their fiscal year that they owned the RHC. This report is due promptly after the sale.

Failure to perform specific functions, submit forms, etc. will result in lack of approval of the CHOW application, and greatly delay the ability of the new owner to submit claims to Medicare and MediCAID for services rendered after they purchased the RHC.

Jim has conducted many CHOW purchases across the nation. Let him help you make this as painless as possible!

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