Medicare Compliance & Reimbursement

Question: Does a medical practice have any obligations to Medicare or Medicare Administrative Contractors (MACs) if it declares bankruptcy?

Texas Subscriber

Answer: Yes, according to the Centers for Medicare & Medicaid Services (CMS) website. CMS instructs practices: “If you have filed a bankruptcy petition or are involved in a bankruptcy proceeding, notify your servicing Medicare Administrative Contractor (MAC) immediately so that we can properly resolve Medicare financial obligations. Even if there are no outstanding payments at the time of the bankruptcy filing, this notification ensures that we handle your situation properly.”

When making contact, you’ll need to include the following information:

• Name associated with the bankruptcy filing
• District where the bankruptcy is filed
• Docket number
• National Provider Identifier (NPI).

You’ll also need to follow any applicable federal laws, rules, and regulations to serve CMS and the U.S. Department of Justice (DOJ) with notice of bankruptcy.

Rachel Dorrell, MA, MS, CPC-A, CPPM, Development Editor, AAPC