405.2436—Termination of agreement.

(a) Termination by Federally qualified health center. The Federally qualified health center may terminate its agreement by—
(1) Filing with CMS a written notice stating its intention to terminate the agreement; and
(2) Notifying CMS of the date on which the Federally qualified health center requests that the termination take effect.
(b) Effective date. (1) Upon receiving a Federally qualified health center's notice of intention to terminate the agreement, CMS will set a date upon which the termination takes effect. This effective date may be—
(i) The date proposed by the Federally qualified health center in its notice of intention to terminate, if that date is acceptable to CMS; or
(ii) Except as specified in paragraph (2) of this section, a date set by CMS, which is no later than 6 months after the date CMS receives the Federally qualified health center's notice of intention to terminate.
(2) The effective date of termination may be less than 6 months following CMS's receipt of the Federally qualified health center's notice of intention to terminate if CMS determines that termination on such a date would not—
(i) Unduly disrupt the furnishing of Federally qualified health center services to the community; or
(ii) Otherwise interfere with the effective and efficient administration of the Medicare program.
(3) The termination is effective at the end of the last day of business as a Federally qualified health center.
(c) Termination by CMS. (1) CMS may terminate an agreement with a Federally qualified health center if it finds that the Federally qualified health center—
(i) No longer meets the requirements specified in this subpart; or
(ii) Is not in substantial compliance with—
(A) The provisions of the agreement; or
(B) The requirements of this subpart, any other applicable regulations of this part, or any applicable provisions of title XVIII of the Act.
(2) Notice by CMS. CMS will notify the Federally qualified health center in writing of its intention to terminate an agreement at least 15 days before the effective date stated in the written notice.
(3) Appeal. A Federally qualified health center may appeal CMS's decision to terminate the agreement in accordance with part 498 of this chapter.
(d) Effect of termination. When a Federally qualified health center's agreement is terminated whether by the Federally qualified health center or CMS, payment will not be available for Federally qualified health center services furnished on or after the effective date of termination.