---
kind: "section"
citation: "42 C.F.R. § 489.12"
title: "42"
number: "489.12"
heading: "Decision to deny an agreement."
url: "https://uscodex.org/cfr/42/489.12"
---

# §489.12. Decision to deny an agreement.

- (a) **Bases for denial.** CMS may refuse to enter into an agreement for any of the following reasons:
  - (1) Principals of the prospective provider have been convicted of fraud (see [§ 420.204](/cfr/42/420.204.md) of this chapter);
  - (2) The prospective provider has failed to disclose ownership and control interests in accordance with [§ 420.206](/cfr/42/420.206.md) of this chapter;
  - (3) The prospective provider is a physician-owned hospital as defined in [§ 489.3](/cfr/42/489.3.md) and does not have procedures in place for making physician ownership disclosures to patients in accordance with [§ 489.20(u)](/cfr/42/489.20.md?p=u); or
  - (4) The prospective provider is unable to give satisfactory assurance of compliance with the requirements of title XVIII of the Act.
- (b) [Reserved]
- (c) **Compliance with civil rights requirements.** CMS will not enter into a provider agreement if the provider fails to comply with civil rights requirements set forth in 45 CFR parts [80](/cfr/45/part80.md), [84](/cfr/45/part84.md), and 90, subject to the provisions of [§ 489.10](/cfr/42/489.10.md).

## Notes

### Amendments

[45 FR 22937, Apr. 4, 1980, as amended at 51 FR 34833, Sept. 30, 1986; 54 FR 4027, Jan. 27, 1989; 59 FR 6578, Feb. 11, 1994; 59 FR 56251, Nov. 10, 1994; 72 FR 47413, Aug. 22, 2007]

### Authority

Authority: 42 U.S.C. 1302, 1395i-3, 1395x, 1395aa(m), 1395cc, 1395ff, and 1395hh.

### Source

Source: 45 FR 22937, Apr. 4, 1980, unless otherwise noted.

### Amendments

[45 FR 22937, Apr. 4, 1980, as amended at 51 FR 34833, Sept. 30, 1986; 54 FR 4027, Jan. 27, 1989; 59 FR 6578, Feb. 11, 1994; 59 FR 56251, Nov. 10, 1994; 72 FR 47413, Aug. 22, 2007]