State Medicaid Director Letter #14-004, RE: Accountability #2: Financing And Donations

On May 9, 2014, the Centers for Medicare and Medicaid Services (CMS) issued a second State Medicaid Director Letter providing guidance related to states concerning Federal Medicaid statute and regulations related to the allowable and unallowable use of provider-related donations and also addresses the use of certain types of public-private arrangements. The guidance letter provides background on regulations relevant to provider-related donations and conditions under which they would be considered by CMS to be a non-bona fide donation. CMS will not approve State Plan Amendments or waivers that include such arrangements . . .