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On May 13, 2026, the Centers for Medicare & Medicaid Services (CMS) announced 6-month nationwide moratoria on new Medicare enrollments of hospice and home health providers (the CMS Announcement). The stated purpose of the temporary moratoria is to help reduce the prevalence of Medicare fraud, waste, and abuse among hospice and home health providers. The moratoria apply to hospices and home health providers seeking to enroll anywhere in the United States, including all States, territories, and the District of Columbia. A copy of the “Home Health and Hospice Nationwide Moratorium Q&As” issued by CMS can be accessed here.
In its announcement, CMS highlighted its belief that the risk of Medicare fraud, waste, and abuse among hospice and home health providers has dramatically increased in the past seven (7) years. CMS takes the position that anti-fraud measures require a comprehensive, wide-ranging approach that impacts a variety of hospice and home health activities, no longer limited to just post-enrollment scrutiny and heightened screening of new owners. CMS believes that the continued severity of hospice and home health program integrity problems dictates that the front end of the enrollment process is a program integrity gap that must be filled. In its press release announcing the moratoria, CMS suggested that providers should expect heightened scrutiny and enforcement activity in the months ahead.
While the temporary enrollment moratoria will remain in effect for six (6) months from May 13, 2026, if CMS deems it necessary, the moratoria may be extended for additional 6-month increments. CMS will evaluate whether to extend or lift the moratoria before the end of the initial 6-month period and, if applicable, before the expiration of any subsequent moratoria periods.
Beginning on May 13, 2026, the moratoria will prevent new hospice or home health providers from being enrolled in Medicare and obtaining a new Medicare provider transaction access number (PTAN) unless the hospice or home health provider’s enrollment application was received by a Medicare contractor prior to that date. The moratoria will not apply to any enrollment application received by the applicable Medicare contractor prior to the effective date of the moratoria. Any initial enrollment application that is received during the moratorium period will be denied. The moratoria only impact new enrollments and do not impact ongoing compliance obligations of already enrolled hospice and home health providers.
In addition, the CMS announcements clarified that under 42 CFR §424.570(a)(1)(iii), the temporary moratoria do not apply to (a) a change in practice location assuming such a change does not require a separate provider enrollment, (b) a change in provider or supplier information, such as phone numbers, or (c) a change in ownership (CHOW) except for CHOWs that would require an initial enrollment or where the 36-month rule that limits certain CHOW transactions is implicated.
The temporary moratoria present significant new challenges for CHOW transactions involving hospice and home health providers. If a proposed CHOW transaction will require an initial enrollment with CMS, or be completed within the first 36 months after either initial enrollment with CMS or its most recent CHOW (thereby requiring that the provider enroll as a new provider and undergo a state survey and accreditation), the moratoria will prevent the transaction from going forward unless one of the few limited exceptions applies. It is therefore critical that hospice and home health providers re-evaluate transactions that are pending or that might be planned to determine if the moratoria apply and, if so, whether there might be an option to structure the transaction to avoid having it characterized as a CHOW requiring a new Medicare enrollment.
For any new hospice or home health entity that is contemplating the establishment of a new hospice or home health provider requiring a new enrollment, those plans should be placed on hold for the duration of the moratoria. Depending on the dynamics of a particular market, opportunities to consider strategic alternatives other than establishing a new provider (such as a joint venture with an already enrolled provider) might be worthy of consideration.
Conclusion
The nationwide moratoria placed by CMS on new Medicare enrollments of hospice and home health providers is a significant development impacting hospice and home health across the country. The moratoria have compliance, transactional and regulatory implications that must be incorporated into operations and strategic planning. Government investigations and enforcement actions are likely to expand, and pending or planned transactions may need to be re-evaluated. To the extent that particular concerns arise, Buchanan’s health care team is prepared to assist our clients through this challenging time.
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