[Code of Federal Regulations] [Title 42, Volume 2] [Revised as of October 1, 2002] From the U.S. Government Printing Office via GPO Access [CITE: 42CFR420.201] [Page 805-806] TITLE 42--PUBLIC HEALTH HUMAN SERVICES PART 420--PROGRAM INTEGRITY: MEDICARE--Table of Contents Subpart C--Disclosure of Ownership and Control Information Sec. 420.201 Definitions. As used in this subpart unless the context indicates otherwise: Agent means any person who has been delegated the authority to obligate or act on behalf of a provider. Disclosing entity means: (1) A provider of services, an independent clinical laboratory, a renal disease facility, a rural health clinic, a Federally qualified health center, or a health maintenance organization (as defined in section 1301(a) of the Public Health Service Act); (2) A carrier or other agency or organization that is acting for one or more providers of services for purposes of part A and part B of Medicare; and (3) A part B supplier, as defined in Sec. 400.202 of this chapter. Other disclosing entity means any other Medicare disclosing entity and any entity that does not participate in Medicare, but is required to disclose certain ownership and control information because of participation in any of the programs established under title V, XIX, or XX of the Act. This includes: (1) An entity (other than an individual practitioner or group of practitioners) that furnishes, or arranges for the furnishing of, items or services for which payment may be claimed by the entity under any plan or program established under title V of the Social [[Page 806]] Security Act or under an approved State Medicaid plan; (2) An entity (other than an individual practitioner or group of practitioners) that furnishes, or arranges for the furnishing of, health-related services for which payment may be claimed by the entity under an approved State plan and services program under title XX of the Act; or (3) A Medicaid fiscal agent. Group of practitioners means two or more health care practitioners who practice their profession at a common location (whether or not they share common facilities, common supporting staff, or common equipment). Indirect ownership interest means any ownership interest in an entity that has an ownership interest in the disclosing entity. The term includes an ownership interest in any entity that has an indirect ownership interest in the disclosing entity. Managing employee means a general manager, business manager, administrator, director, or other individual who exercises operational or managerial control over, or who directly or indirectly conducts, the day-to-day operation of the institution, organization, or agency. Ownership interest means the possession of equity in the capital, the stock, or the profits of the disclosing entity. Person with an ownership or control interest means a person or corporation that-- (1) Has an ownership interest totaling 5 percent or more in a disclosing entity; (2) Has an indirect ownership interest equal to 5 percent or more in a disclosing entity; (3) Has a combination of direct and indirect ownership interests equal to 5 percent or more in a disclosing entity; (4) Owns an interest of 5 percent or more in any mortgage, deed of trust, note, or other obligation secured by the disclosing entity if that interest equals at least 5 percent of the value of the property or assets of the disclosing entity; (5) Is an officer or director of a disclosing entity that is organized as a corporation; or (6) Is a partner in a disclosing entity that is organized as a partnership. Significant business transaction means any business transaction or series of transactions during any one fiscal year, the total of which exceeds the lesser of $25,000 and 5 percent of the total operating expenses of the provider. Subcontractor means-- (1) An individual, agency, or organization to which a disclosing entity has contracted or delegated some of its management functions or responsibilities of providing medical care to its patients; or (2) An individual, agency, or organization with which an intermediary or carrier has entered into a contract, agreement, purchase order or lease (or leases of real property) to obtain space, supplies, equipment, or services provided under the Medicare agreement. Wholly owned supplier means a supplier whose total ownership interest is held by a provider or by a person, persons, or other entity with an ownership or control interest in a provider. [44 FR 41642, July 17, 1979, as amended at 57 FR 24982, June 12, 1992; 57 FR 27306, June 18, 1992; 57 FR 35760, Aug. 11, 1992]