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Home Health & Hospice Week

Industry Notes:

Assess 36-Month Rule For Transactions, Experts Warn

Published on Fri Jan 28, 2011

If you hope to squeeze into an exception in the so-called 36-month rule to avoid a new enrollment survey when changing ownership, you'd better make sure you fit squarely into a safe harbor or risk major ramifications. For example: CMS gives an exception to agencies that have two years of cost reports. "For purposes of meeting the cost report exception, the two years of cost reports must be consecutive and must have been accepted by the contractor," law firm K&L Gates says in new analysis of the 36- month rule final rule. The 36-month rule has been "a turbulent two years in the making," the firm notes in its analysis. "While substantially limited ... it still remains a significant hurdle that must be assessed and carefully planned for in any HHA recapitalization, merger, or acquisition." Resource: See K&L's full review of the rule online at www.klgates.com/newsstand/detail.aspx?publication=6889.
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