[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR455.102]



[Page 336-337]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 455_PROGRAM INTEGRITY: MEDICAID--Table of Contents

 

   Subpart B_Disclosure of Information by Providers and Fiscal Agents

 

Sec.  455.102  Determination of ownership or control percentages.



    (a) Indirect ownership interest. The amount of indirect ownership 

interest is determined by multiplying the percentages of ownership in 

each entity. For example, if A owns 10 percent of the stock in a 

corporation which owns 80 percent of the stock of the disclosing entity, 

A's interest equates to an 8 percent indirect ownership interest in the 

disclosing entity and must be reported. Conversely, if B owns 80 percent 

of the stock of a corporation which owns 5 percent of the stock of the 

disclosing



[[Page 337]]



entity, B's interest equates to a 4 percent indirect ownership interest 

in the disclosing entity and need not be reported.

    (b) Person with an ownership or control interest. In order to 

determine percentage of ownership, mortgage, deed of trust, note, or 

other obligation, the percentage of interest owned in the obligation is 

multiplied by the percentage of the disclosing entity's assets used to 

secure the obligation. For example, if A owns 10 percent of a note 

secured by 60 percent of the provider's assets, A's interest in the 

provider's assets equates to 6 percent and must be reported. Conversely, 

if B owns 40 percent of a note secured by 10 percent of the provider's 

assets, B's interest in the provider's assets equates to 4 percent and 

need not be reported.