If a supplier purchases 5 percent or greater interest in a contract supplier, we can add its location(s) to the seller’s contract using the Contract Supplier Location Update Form signed by the seller if:

 • the purchasing supplier and the seller have updated their CMS 855S enrollment applications with the National Supplier Clearinghouse (NSC) and its enrollment records reflect the purchase;

 • these companies are considered commonly owned or commonly controlled by the NSC;

 • the seller's contract is active (not cancelled or terminated) and the contract supplier (seller) continues to exist and operate as before the stock sale;

 • the purchasing supplier’s location(s) meets all of the competitive bidding requirements for the
   competitive bidding area (CBA) and product category, such as enrollment, licensure, and accreditation;

 • the location(s) is not already on another contract for the same CBA/ product category combination; and

 • an authorized official or backup authorized official on record for the seller’s contract signs the form.

Yes, the contract supplier may continue to serve these beneficiaries throughout the remainder of the rental period. By purchasing a grandfathered supplier, the contract supplier is essentially stepping into the shoes of the grandfathered supplier. For that reason, no additional payments will be authorized.

Examples of what contract suppliers will be paid as a grandfathered supplier:

- For rented items in the oxygen product category, the contract supplier will be paid the single payment amount for the remainder of the existing rental period or until the item is no longer medically necessary.

- For rented items in the capped rental product categories (hospital beds; continuous positive airway pressure (CPAP) devices; respiratory assistive devices (RADs); standard (manual and power) wheelchairs and scooters; support surfaces and negative pressure wound therapy (NPWT) pumps, the contract supplier will be paid the fee schedule amount for the remainder of the existing rental period or until the item is no longer medically necessary.

- For rented items in the inexpensive or routinely purchased (IRP) product category (walkers), the contract supplier will be paid the fee schedule amount until the point at which payments for the item equal 100 percent of the fee schedule amount for the purchase of the item.