[Federal Register Volume 90, Number 34 (Friday, February 21, 2025)]
[Notices]
[Pages 10079-10080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02914]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[CMS-3466-FN]


Medicare and Medicaid Programs: Approval of Application From the 
American Association for Accreditation of Ambulatory Surgery Facilities 
dba QUAD A for Continued CMS-Approval of Its Outpatient Physical 
Therapy (OPT) Accreditation Program

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Notice.

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SUMMARY: This notice acknowledges the approval of an application from 
the American Association for Accreditation of Ambulatory Surgery 
Facilities dba QUAD A for continued recognition as a national 
accrediting organization for Outpatient Physical Therapy programs that 
wish to participate in the Medicare or Medicaid programs.

DATES: The decision announced in this notice is applicable April 4, 
2025 to April 4, 2030.

FOR FURTHER INFORMATION CONTACT: Caecilia Andrews, (410) 786-2190.

SUPPLEMENTARY INFORMATION:

I. Background

    A healthcare provider may enter into an agreement with Medicare to 
participate in the program as a provider of outpatient physical therapy 
(OPT) provided certain requirements are met. Section 1861(p)(4) of the 
Social Security Act (the Act), establishes distinct criteria for 
facilities seeking designation as an OPT. Regulations concerning 
Medicare provider agreements in general are at 42 CFR part 489 and 
those pertaining to the survey and certification for Medicare 
participation of providers and certain types of suppliers are at part 
488. The regulations at part 485, subpart H, specify the conditions 
that a provider must meet to participate in the Medicare program as an 
OPT.
    Generally, to enter into an agreement, an OPT must first be 
certified by a state survey agency (SA) as complying with the 
conditions or requirements set forth in part 485 of our Medicare 
regulations. Thereafter, the OPT is subject to regular surveys by an SA 
to determine whether it continues to meet these requirements. Section 
1865(a)(1) of the Act provides that, if a provider entity demonstrates 
through accreditation by a Centers for Medicare & Medicaid Services 
(CMS) approved national accrediting organization (AO) that all 
applicable Medicare conditions are met or exceeded, we may deem that 
provider entity as having met the requirements. Accreditation by an AO 
is voluntary and is not required for Medicare participation.
    If an AO is recognized by the Secretary of the Department of Health 
and Human Services as having standards for accreditation that meet or 
exceed Medicare requirements, any provider entity accredited by the 
national accrediting body's approved program may be deemed to meet the 
Medicare conditions. The AO applying for approval of its accreditation 
program under part 488, subpart A, must provide CMS with reasonable 
assurance that the AO requires the accredited provider entities to meet 
requirements that are at least as stringent as the Medicare conditions. 
Our regulations concerning the approval of AOs are set forth at Sec.  
488.5.
    The QUAD A's current term of approval for its OPT program expires 
April 4, 2025.

II. Application Approval Process

    Section 1865(a)(3)(A) of the Act provides a statutory timetable to 
ensure that our review of applications for CMS-approval of an 
accreditation program is conducted in a timely manner. The Act provides 
us 210 days after the date of receipt of a complete application, with 
any documentation necessary to make the determination, to complete our 
survey activities and application process. Within 60 days after 
receiving a complete application, we must publish a notice in the 
Federal Register that identifies the national accrediting body making 
the request, describes the request, and provides no less than a 30-day 
public comment period. At the end of the 210-day period, we must 
publish a notice in the Federal Register approving or denying the 
application.

III. Provisions of the Proposed Notice

    On October 17, 2024, we published a proposed notice in the Federal 
Register (89 FR 8368), announcing QUAD A's request for continued 
approval of its Medicare OPT accreditation program. In the proposed 
notice, we detailed our evaluation criteria. Under section 1865(a)(2) 
of the Act and in our regulations at Sec.  488.5, we conducted a review 
of QUAD A's Medicare OPT accreditation application in accordance with 
the criteria specified by our regulations, which include, but are not 
limited to the following:
     An administrative review of QUAD A's: (1) corporate 
policies; (2) financial

[[Page 10080]]

and human resources available to accomplish the proposed surveys; (3) 
procedures for training, monitoring, and evaluation of its surveyors; 
(4) ability to investigate and respond appropriately to complaints 
against accredited facilities; and (5) survey review and decision-
making process for accreditation.
     A comparison of QUAD A's accreditation to our current 
Medicare OPT conditions of participation (CoPs).
     A documentation review of QUAD A's survey process to:
    ++ Determine the composition of the survey team, surveyor 
qualifications, and QUAD A's ability to provide continuing surveyor 
training.
    ++ Compare QUAD A's processes to those of state survey agencies, 
including survey frequency, and the ability to investigate and respond 
appropriately to complaints against accredited facilities.
    ++ Evaluate QUAD A's procedures for monitoring OPTs out of 
compliance with QUAD A's program requirements. The monitoring 
procedures are used only when QUAD A identifies noncompliance. If 
noncompliance is identified through validation reviews, the state 
survey agency monitors corrections as specified at Sec.  488.7(d).
    ++ Assess QUAD A's ability to report deficiencies to the surveyed 
facilities and respond to the facility's plan of correction in a timely 
manner.
    ++ Establish QUAD A's ability to provide CMS with electronic data 
and reports necessary for effective validation and assessment of the 
organization's survey process.
    ++ Determine the adequacy of staff and other resources.
    ++ Confirm QUAD A's ability to provide adequate funding for 
performing required surveys.
    ++ QUAD A's policies and procedures to avoid conflicts of interest, 
including the appearance of conflicts of interest, involving 
individuals who conduct surveys or participate in accreditation 
decisions.
    ++ Confirm QUAD A's policies with respect to whether surveys are 
unannounced.

IV. Analysis of and Responses to Public Comments on the Proposed Notice

    In accordance with section 1865(a)(3)(A) of the Act, the October 
17, 2024 proposed notice also solicited public comments regarding 
whether QUAD A's requirements met or exceeded the Medicare CoPs for 
OPTs. We did not receive any comments.

V. Provisions of the Final Notice

A. Differences Between OPT's Standards and Requirements for 
Accreditation and Medicare Conditions and Survey Requirements

    We compared QUAD A's requirements and survey process with the 
Medicare CoPs and survey process as outlined in the State Operations 
Manual (SOM). Our review and evaluation of QUAD A's OPT application 
were conducted as described in section III. of this notice and has 
yielded the following areas where, as of the date of this notice, QUAD 
A's has completed revising its standards and certification processes in 
order to:
     Meet the standard's requirements of all of the following 
regulations:
    ++ Section 488.5(a)(4)(ii), to incorporate additional 
clarifications on the types of surveys related to OPT organizations and 
incorporate comparable guidance for surveyors, consistent with CMS 
policy memorandums Admin Info-24-22 (which streamlined certification 
processes for OPTs and other programs) as well as QSO-24-18 OPT (which 
outlined OPT expectations for surveying extension locations).
    ++ Section 485.721(b) and State Operations Manual (SOM) Appendix E, 
to provide additional clarification in its survey process to ensure 
that clinical record reviews include primary and extension locations 
and treatment provided by contracted employees, if applicable and 
include all content as required by the regulation.
    ++ Section 485.709, to review survey findings and provide 
additional policies or training to identify situations where governing 
body citations at a condition level would be appropriate.
    ++ Sections 488.5(a)(4)(ii) and 488.28(d), to revise the 
communication information provided to the provider to delineate more 
clearly the process as it relates to potential termination as OPTs is 
generally expected to be in compliance within 60 days of the 
deficiencies, as comparable to the process of the State Survey 
Agencies. Specifically, we requested QUAD A to clarify the impact for 
Medicare participation versus QUAD A's accreditation program.
    In addition to the standards review, we also reviewed QUAD A's 
comparable survey processes, which were conducted as described in 
section III. of this notice, and yielded the following areas where, as 
of the date of this notice, QUAD A has completed revising its survey 
processes, in order to demonstrate that it uses survey processes that 
are comparable to state survey agency processes by:
     Providing additional surveyor education to ensure, when 
opportunities present during the course of the survey, that surveyors 
conduct patient interviews, consistent with SOM Appendix E.
     Revising survey processes to provide emphasis on staff 
interviews and gearing those interviews to allow staff to demonstrate 
knowledge of the applicable policies and procedures.
     Revising the survey process and providing education to 
surveyors to ensure equipment used by the OPT not only encompasses 
elements of Sec.  485.723(b), but also includes an assessment of 
whether the facility is complying with the manufacturer instructions 
for use and guidance.

B. Term of Approval

    Based on our review and observations described in section III. and 
section V. of this notice, we approve QUAD A as a national AO for OPTs 
that request participation in the Medicare program. The decision 
announced in this final notice is effective April 4, 2025 through April 
4, 2030 (5 years). In accordance with Sec.  488.5(e)(2)(i), the term of 
the approval will not exceed 6 years.

VI. Collection of Information Requirements

    This document does not impose information collection requirements, 
that is, reporting, recordkeeping, or third-party disclosure 
requirements. Consequently, there is no need for review by the Office 
of Management and Budget under the authority of the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.).
    The Acting Administrator of the Centers for Medicare & Medicaid 
Services (CMS), Stephanie Carlton, having reviewed and approved this 
document, authorizes Vanessa Garcia, who is the Federal Register 
Liaison, to electronically sign this document for purposes of 
publication in the Federal Register.

Vanessa Garcia,
Federal Register Liaison, Centers for Medicare & Medicaid Services.
[FR Doc. 2025-02914 Filed 2-20-25; 8:45 am]
BILLING CODE 4120-01-P