42 CFR 423.553 - Effect of leasing of a PDP sponsor's facilities.
(b) Effect of lease of all facilities.
(1) If a PDP sponsor leases all of its facilities to another entity, the contract terminates.
(c) Effect of partial lease of facilities. If the PDP sponsor leases part of its facilities to another entity, its contract with CMS remains in effect while CMS surveys the PDP sponsor to determine whether it continues to be in compliance with the applicable requirements and qualifying conditions specified in subpart K of this part.