42 CFR § 424.527 - Provisional period of enhanced oversight.

---
identifier: "/us/cfr/t42/s424.527"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 424.527 - Provisional period of enhanced oversight."
title_number: 42
title_name: "Public Health"
section_number: "424.527"
section_name: "Provisional period of enhanced oversight."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "B"
subchapter_name: "MEDICARE PROGRAM"
part_number: "424"
part_name: "CONDITIONS FOR MEDICARE PAYMENT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302 and 1395hh."
regulatory_source: "53 FR 6634, Mar. 2, 1988, unless otherwise noted."
cfr_part: "424"
---


# 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).)

(2) A certified provider or certified supplier undergoing a change of ownership consistent with the principles of 42 CFR 489.18. (This includes providers that qualify under § 424.550(b)(2) for an exception from the change in majority ownership requirements in § 424.550(b)(1) but which are undergoing a change of ownership under 42 CFR 489.18).

(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.

(4) A provider or supplier reactivating the provider's or supplier's Medicare enrollment and billing privileges in accordance with § 424.540(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.

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