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Global Life Sciences Update

CMS Proposes Augmented Nursing Facility Ownership Disclosure Targeting Private Equity and REITs

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The U.S. Centers for Medicare & Medicaid Services (CMS or the Agency) has released a significant proposed rule (the Proposed Rule) that would require Medicare skilled nursing facilities (SNFs) and Medicaid nursing facilities (collectively, Nursing Facilities) to disclose additional information related to their ownership and management structures. The Proposed Rule seeks to implement portions of Section 6101 of the Affordable Care Act (ACA) for which the Agency previously proposed regulations in 2011, but never finalized and were considered permanently dormant by many industry experts.  

With the Proposed Rule, however, CMS is clearly renewing its focus on these requirements as part of a series of initiatives initially announced by the Biden administration on February 28, 2022, responding to concerns about the standard of care and quality of operations of Nursing Facilities.1 CMS is also proposing to use its discretion to go beyond the ACA and require Nursing Facilities owners and managers to specifically disclose whether they are private equity (PE) companies and real estate investment trusts (REITs), signaling a potential oversight interest.

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