{"cite":"42 CFR 424.502","available":true,"heading":"§ 424.502 Definitions.","text":"As used in this subpart, unless the context indicates otherwise—\nAdditional disclosable party means, with respect to a skilled nursing facility defined at section 1819(a) of the Act, any person or entity who does any of the following:\n(1)(i) Exercises operational, financial, or managerial control over the facility or a part thereof;\n(ii) Provides policies or procedures for any of the operations of the facility; or\n(iii) Provides financial or cash management services to the facility.\n(2)(i) Leases or subleases real property to the facility; or\n(ii) Owns a whole or part interest equal to or exceeding 5 percent of the total value of such real property.\n(3) Provides—\n(i) Management or administrative services;\n(ii) Management or clinical consulting services; or\n(iii) Accounting or financial services to the facility.\nAffiliation means, for purposes of applying § 424.519, any of the following:\n(1) A 5 percent or greater direct or indirect ownership interest that an individual or entity has in another organization.\n(2) A general or limited partnership interest (regardless of the percentage) that an individual or entity has in another organization.\n(3) An interest in which an individual or entity exercises operational or managerial control over, or directly or indirectly conducts, the day-to-day operations of another organization (including, for purposes of this paragraph (3), sole proprietorships), either under contract or through some other arrangement, regardless of whether or not the managing individual or entity is a W-2 employee of the organization.\n(4) An interest in which an individual is acting as an officer or director of a corporation.\n(5) Any reassignment relationship under § 424.80.\nApprove/Approval means the enrolling provider or supplier has been determined to be eligible under Medicare rules and regulations to receive a Medicare billing number and be granted Medicare billing privileges.\nAuthorized official means an appointed official (for example, chief executive officer, chief financial officer, general partner, chairman of the board, or direct owner) to whom the organization has granted the legal authority to enroll it in the Medicare program, to make changes or updates to the organization's status in the Medicare program, and to commit the organization to fully abide by the statutes, regulations, and program instructions of the Medicare program. For purposes of this definition only, the term “organization” means the enrolling entity as identified by its legal business name and tax identification number.\nChange in majority ownership occurs when an individual or organization acquires more than a 50 percent direct ownership interest in an HHA or hospice during the 36 months following the HHA's or hospice's initial enrollment into the Medicare program or the 36 months following the HHA's or hospice's most recent change in majority ownership (including asset sale, stock transfer, merger, and consolidation). This includes an individual or organization that acquires majority ownership in an HHA or hospice through the cumulative effect of asset sales, stock transfers, consolidations, or mergers during the 36-month period after Medicare billing privileges are conveyed or the 36-month period following the HHA's or hospice's most recent change in majority ownership.\nDeactivate means, except in the situations described in § 424.547, that the provider or supplier's billing privileges were stopped, but can be restored upon the submission of updated information.\nDelegated official means an individual who is delegated by the “Authorized Official,” the authority to report changes and updates to the enrollment record. The delegated official must be an individual with ownership or control interest in, or be a W-2 managing employee of the provider or supplier.\nDeny/Denial means the enrolling provider or supplier has been determined to be ineligible to receive Medicare billing privileges for Medicare covered items or services provided to Medicare beneficiaries.\nDirector means a director of a corporation, regardless of whether the provider or supplier is a non-profit entity. This includes any member of the corporation's governing body irrespective of the precise title of either the board or the member.\nDisclosable event means, for purposes of § 424.519, any of the following:\n(1) Currently has an uncollected debt to Medicare, Medicaid, or CHIP, regardless of—\n(i) The amount of the debt;\n(ii) Whether the debt is currently being repaid (for example, as part of a repayment plan); or\n(iii) Whether the debt is currently being appealed;\n(2) Has been or is subject to a payment suspension under a federal health care program (as that latter term is defined in section 1128B(f) of the Act), regardless of when the payment suspension occurred or was imposed;\n(3) Has been or is excluded by the OIG from participation in Medicare, Medicaid, or CHIP, regardless of whether the exclusion is currently being appealed or when the exclusion occurred or was imposed; or\n(4) Has had its Medicare, Medicaid, or CHIP enrollment denied, revoked, or terminated, regardless of—\n(i) The reason for the denial, revocation, or termination;\n(ii) Whether the denial, revocation, or termination is currently being appealed; or\n(iii) When the denial, revocation, or termination occurred or was imposed.\nEnroll/Enrollment means the process that Medicare uses to establish eligibility to submit claims for Medicare-covered items and services, and the process that Medicare uses to establish eligibility to order or certify Medicare-covered items and services. The process includes—\n(1) Identification of a provider or supplier;\n(2) Except for those suppliers that complete the CMS-855O form, CMS-identified equivalent, successor form or process for the sole purpose of obtaining eligibility to order or certify Medicare-covered items and services, validating the provider or supplier's eligibility to provide items or services to Medicare beneficiaries;\n(3) ","truncated":true,"as_of":"2026-10-15","amendment_dates":["2017-01-01","2017-11-16","2018-01-01","2019-09-10","2019-10-28","2019-11-29","2020-01-01","2021-11-19","2022-01-01","2022-11-18","2023-01-01","2023-11-13","2023-11-16","2023-11-17","2024-01-01","2024-01-16","2025-12-02","2026-01-01"],"latest_amendment":"2026-01-01","sha256_of_xml":"e7915994b259270d687c0e833fc08f7cfd2118cc0a3ab209eea76ba73dd164cb","ecfr_url":"https://www.ecfr.gov/current/title-42/section-424.502","read_at":"2026-10-18T23:07:21.359507+00:00","note":"The eCFR is an editorial compilation maintained by the Office of the Federal Register and GPO; it is updated daily and is not the official legal edition (the annual Code of Federal Regulations is). Text printed here is as the eCFR served it on the read date."}