On July 17, 2025, the Centers for Medicare and Medicaid Services (CMS) announced an additional extension of the deadline by which skilled nursing facilities (SNFs) must revalidate their Medicare enrollments. Enrolled SNFs should collect data on ownership, managerial, and related party information and submit their revalidation by January 1, 2026.[1]
On April 17, 2025 CMS extended the revalidation deadline from May 1, 2025, to August 1, 2025 and, on May 9, 2025, published guidance attempting to clarify new disclosure requirements.[2] The Final Rule CMS published in the Federal Register on November 17, 2023[3], which became effective on January 16, 2024, requires these off-cycle revalidations. These updated regulations set forth additional requirements for SNFs in disclosing ownership and control interests and additional disclosable parties (ADPs) as part of their Medicare enrollment.[4]
Under these regulations, SNFs must disclose the members of the facility’s governing body, officers, directors, members, partners, trustees, managing employees, and additional disclosable parties (and their organizational structures)[5], which include any person or entity who does any of the following:
(1)
- Exercises operational, financial, or managerial control over the facility or a part thereof;
- Provides policies or procedures for any of the operations of the facility; or
- Provides financial or cash management services to the facility.
(2)
- Leases or subleases real property to the facility; or
- Owns a whole or part interest equal to or exceeding 5% of the total value of such real property.
(3) Provides—
- Management or administrative services;
- Management or clinical consulting services; or
- Accounting or financial services to the facility.[6]
As the basis for these disclosure requirements, CMS referenced concerns with private equity ownership of SNFs and its desire to assess the impact of such ownership on quality of patient care. CMS stated that:
Part of the challenge CMS faces in ensuring quality care at nursing homes is our lack of sufficient knowledge of all the parties associated with the nursing home’s ownership, operations, and management. Without a complete understanding of the full scope of the facility’s operations and its relationship with other persons and entities, it can be challenging to pinpoint the origin within the organization’s overall structure of any quality-of-care problems, as well as whether taxpayer funding is being appropriately spent on care.[7]
Additionally, in response to comments regarding the administrative burden and operational difficulties these reporting requirements may impose on SNFs, CMS determined that “the importance of quality care and the potential saving of lives justifies additional burden on the part of the nursing facilities.”[8]
CMS has not expressly provided a rationale for the new deadline extension, but the sheer scope of the administrative lift for SNFs to comply with these reporting requirements may be a contributing factor. Given the Trump Administration’s scrutiny of existing HHS guidance and even existing regulations that are deemed to be overly burdensome, we cannot rule out the possibility of a change in course as to CMS’ focus on ownership and control transparency. Given the additional time for completion, providers should watch carefully for additional guidance with respect to the completion of their revalidations.
Foley is here to help you address the short and long-term impacts in the wake of regulatory changes. We have the resources to help you navigate these and other important legal considerations related to business operations and industry-specific issues. Please reach out to the authors, your Foley relationship partner, our Health Care & Life Sciences Sector, or to our Health Care Practice Group with any questions.
Special thanks to Funmi Oguns, a summer associate in Foley’s Dallas office, for her contributions to this article.
[1] Centers for Medicare & Medicaid Services, 2025-07-17-MLNC (July 17, 2025) https://www.cms.gov/training-education/medicare-learning-network/newsletter/2025-07-17-mlnc#_Toc203551344
[2] Centers for Medicare & Medicaid Services, GUIDANCE FOR SNF ATTACHMENT ON FORM CMS-855A (May 9, 2025) https://www.cms.gov/files/document/guidance-snf-attachment-855a.pdf
[3] 88 FR 80141 (Nov. 17, 2023).
[4] 42 C.F.R. § 424.516(g).
[5] Id.
[6] 42 C.F.R. § 424.502.
