Indirect ownership interest

Indirect ownership interest means as follows:
(1)
(i) Any ownership interest in an entity that has an ownership interest in the enrolling or enrolled provider or supplier.
(ii) Any ownership interest in an indirect owner of the enrolling or enrolled provider or supplier.
(2) 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 that owns 80 percent of the provider or supplier, A's interest equates to an 8 percent indirect ownership interest in the provider or supplier and must be reported on the enrollment application. Conversely, if B owns 80 percent of the stock of a corporation that owns 5 percent of the stock of the provider or supplier, B's interest equates to a 4 percent indirect ownership interest in the provider or supplier and need not be reported.

Source

42 CFR § 424.502

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Scoping language

As used in this subpart, unless the context indicates otherwise

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