CFR > Title 42 - Public Health > CHAPTER IV—CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES > SUBCHAPTER G—STANDARDS AND CERTIFICATION (parts 482 to 498) > PART 485—CONDITIONS OF PARTICIPATION: SPECIALIZED PROVIDERS > SUBPART B—Conditions of Participation: Comprehensive Outpatient Rehabilitation Facilities (§485.50 to §485.74) > 485.56—Condition of participation: Governing body and administration.

485.56—Condition of participation: Governing body and administration.

The facility must have a governing body that assumes full legal responsibility for establishing and implementing policies regarding the management and operation of the facility.
(a) Standard: Disclosure of ownership. The facility must comply with the provisions of part 420, subpart C of this chapter that require health care providers and fiscal agents to disclose certain information about ownership and control.
(b) Standard: Administrator. The governing body must appoint an administrator who—
(1) Is responsible for the overall management of the facility under the authority delegated by the governing body;
(2) Implements and enforces the facility's policies and procedures;
(3) Designates, in writing, an individual who, in the absence of the administrator, acts on behalf of the administrator; and
(4) Retains professional and administrative responsibility for all personnel providing facility services.
(c) Standard: Group of professional personnel. The facility must have a group of professional personnel associated with the facility that—
(1) Develops and periodically reviews policies to govern the services provided by the facility; and
(2) Consists of at least one physician and one professional representing each of the services provided by the facility.
(d) Standard: Institutional budget plan. The facility must have an institutional budget plan that meets the following conditions:
(1) It is prepared, under the direction of the governing body, by a committee consisting of representatives of the governing body and the administrative staff.
(2) It provides for—
(i) An annual operating budget prepared according to generally accepted accounting principles;
(ii) A 3-year capital expenditure plan if expenditures in excess of $100,000 are anticipated, for that period, for the acquisition of land; the improvement of land, buildings, and equipment; and the replacement, modernization, and expansion of buildings and equipment; and
(iii) Annual review and updating by the governing body.
(e) Standard: Patient care policies. The facility must have written patient care policies that govern the services it furnishes. The patient care policies must include the following:
(1) A description of the services the facility furnishes through employees and those furnished under arrangements.
(2) Rules for and personnel responsibilities in handling medical emergencies.
(3) Rules for the storage, handling, and administration of drugs and biologicals.
(4) Criteria for patient admission, continuing care, and discharge.
(5) Procedures for preparing and maintaining clinical records on all patients.
(6) A procedure for explaining to the patient and the patient's family the extent and purpose of the services to be provided.
(7) A procedure to assist the referring physician in locating another level of care for—patients whose treatment has terminated and who are discharged.
(8) A requirement that patients accepted by the facility must be under the care of a physician.
(9) A requirement that there be a plan of treatment established by a physician for each patient.
(10) A procedure to ensure that the group of professional personnel reviews and takes appropriate action on recommendations from the utilization review committee regarding patient care policies.
(f) Standard: Delegation of authority. The responsibility for overall administration, management, and operation must be retained by the facility itself and not delegated to others.
(1) The facility may enter into a contract for purposes of assistance in financial management and may delegate to others the following and similar services:
(i) Bookkeeping.
(ii) Assistance in the development of procedures for billing and accounting systems.
(iii) Assistance in the development of an operating budget.
(iv) Purchase of supplies in bulk form.
(v) The preparation of financial statements.
(2) When the services listed in paragraph (f)(1) of this section are delegated, a contract must be in effect and:
(i) May not be for a term of more than 5 years;
(ii) Must be subject to termination within 60 days of written notice by either party;
(iii) Must contain a clause requiring renegotiation of any provision that CMS finds to be in contravention to any new, revised or amended Federal regulation or law;
(iv) Must state that only the facility may bill the Medicare program; and
(v) May not include clauses that state or imply that the contractor has power and authority to act on behalf of the facility, or clauses that give the contractor rights, duties, discretions, or responsibilities that enable it to dictate the administration, mangement, or operations of the facility.