Chow Agreement

While the Medicare provider agreement and other payor contracts are entitled to a lot of attention during a CHOW, don`t forget the pharmacy-related contracts. It is essential to ensure that pharmacy operations can continue smoothly after the CHOW in order to maintain a high level of patient care. These pharmacy-related agreements (e.g. B switch-seller contracts, 340B-TPAs and equipment leasing) can normally be awarded to the buyer, generally present a low risk of historical liability and can serve as a temporary bridge before entering into new agreements. The temporary award of 340B contracts can also lead to an uninterrupted realization of 340B of drug costs for the new purchaser. However, before accepting the assignment of contracts, the purchaser should perform due diligence to confirm that this is not contrary to the exclusivity clauses in existing pharmacy contracts at the system level. After CHOW agreement, the supplier contract with CMS is automatically awarded to the new owner, unless the new owner refuses the assignment in his 855-form bids. When the supplier contract is awarded, the new owner is subject to the terms of the supplier contract and is responsible for Medicare penalties and penalties under the agreement. The new owner receives payments as soon as CMS has approved the award of the supplier agreement. On the other hand, if the contract is refused by the new owner, he does not receive Medicare payments for services provided after the agreement is refused. The new owner may apply to participate in the Medicare program, although the provider is unable to charge for and obtain services provided during the period during which it is not enrolled in the Medicare program.

Chape-accredited suppliers or suppliers must notify CHAP 30 calendar days before a change of ownership (CHOW) comes into effect. Providers who also participate in Medicare certifications must also submit the corresponding Medicare registration application (CMS-855 form) to the Medicare Administrative Contractor (MAC), which indicates whether the owner accepts or refuses to award the existing Medicare agreement.

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