Chow Agreement

Under Medicare rules, a CHOW is defined as one of the following: (a) in a partnership, the estrangement, supplement, or replacement of a partner, unless the partners expressly agree otherwise, as permitted by state law; (b) in a sole proprietorship, the transfer of ownership of assets to another party; (c) in a capital company, the merger of the company with another company or the consolidation of two or more limited liability companies, each leading to the creation of a new company; or (d) a lease of all or part of HCF. Frequent CHOW transactions include asset sale and purchase transactions and leasing transactions in which the buyer/lessee agrees to accept the assignment of the current operator`s agreement and Medicare vendor number. (Note: It is possible, for Medicare and Medicaid purposes, for a buyer/lessee to register as a new provider and not accept the assignment of the Medicare and Medicaid provider agreements. However, this process will take much longer and disrupt the operation (and cash flow) of the HCF and will generally not be followed by buyers/takers.) For Medicare purposes, a CHOW must be notified within 30 days of the effective date of the amendment. The Medicare Administrator will verify the HCF submission and make a recommendation for vendor registration with the Centers for Medicare & Medicaid Services («CMS»). If CMS approves the recommendation, a «commitment notification» is issued, indicating that the supplier has been registered and can start making the count.. . . .