---
kind: "section"
citation: "42 C.F.R. § 424.527"
title: "42"
number: "424.527"
heading: "Provisional period of enhanced oversight."
url: "https://uscodex.org/cfr/42/424.527"
---

# §424.527. Provisional period of enhanced oversight.

- (a) **New provider or supplier.** Exclusively for purposes of both section 1866(j)(3) of the Act and this § 424.527, the term “new provider or supplier” is defined as any of the following:
  - (1) **A newly enrolling Medicare provider or supplier.** (This includes providers that are required to enroll as a new provider in accordance with the change in majority ownership provisions in [§ 424.550(b)](/cfr/42/424.550.md?p=b).)
  - (2) A certified provider or certified supplier undergoing a change of ownership consistent with the principles of [42 CFR 489.18](/cfr/42/489.18.md). (This includes providers that qualify under [§ 424.550(b)(2)](/cfr/42/424.550.md?p=b-2) for an exception from the change in majority ownership requirements in [§ 424.550(b)(1)](/cfr/42/424.550.md?p=b-1) but which are undergoing a change of ownership under [42 CFR 489.18](/cfr/42/489.18.md)).
  - (3) A provider or supplier (including an HHA or hospice) undergoing a 100 percent change of ownership via a change of information request under [§ 424.516](/cfr/42/424.516.md).
  - (4) A provider or supplier reactivating the provider's or supplier's Medicare enrollment and billing privileges in accordance with [§ 424.540(b)](/cfr/42/424.540.md?p=b).
- (b) **Effective date.** The effective date of a provisional period of enhanced oversight that is commenced under section 1866(j)(3) of the Act is the date on which the new provider or supplier submits its first claim.

## Notes

### Amendments

[88 FR 77877, Nov. 13, 2023, as amended at 89 FR 88485, Nov. 7, 2024]

### Source

Source: 71 FR 20776, Apr. 21, 2006, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 53 FR 6634, Mar. 2, 1988, unless otherwise noted.

### Amendments

[88 FR 77877, Nov. 13, 2023, as amended at 89 FR 88485, Nov. 7, 2024]