36-Month Rule
The 36-month rule is a Medicare enrollment regulation (42 CFR 424.550(b)) that applies when majority ownership of a home health agency changes within 36 months of its initial enrollment or its most recent change in majority ownership. When triggered, the Medicare provider agreement and billing privileges do not transfer to the buyer, who must instead enroll as a brand-new provider and complete a new state survey or accreditation.
Definition
The 36-month rule is a Medicare enrollment regulation (42 CFR 424.550(b)) that applies when majority ownership of a home health agency changes within 36 months of its initial enrollment or its most recent change in majority ownership. When triggered, the Medicare provider agreement and billing privileges do not transfer to the buyer, who must instead enroll as a brand-new provider and complete a new state survey or accreditation.
Why it matters
36-Month Rule is part of the Compliance & Survey vocabulary used across home health operations, documentation, and revenue cycle. Understanding it helps clinicians, QA leads, and administrators stay aligned on care quality and compliance.
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