42 CFR § 460.54 - Termination procedures.

---
identifier: "/us/cfr/t42/s460.54"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "42 CFR § 460.54 - Termination procedures."
title_number: 42
title_name: "Public Health"
section_number: "460.54"
section_name: "Termination procedures."
chapter_name: "CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF HEALTH AND HUMAN SERVICES"
subchapter_number: "E"
subchapter_name: "PROGRAMS OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE)"
part_number: "460"
part_name: "PROGRAMS OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE)"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 1302, 1395, 1395eee(f), and 1396u-4(f)."
regulatory_source: "64 FR 66279, Nov. 24, 1999, unless otherwise noted."
cfr_part: "460"
---


# 460.54 Termination procedures.

(a) Except as provided in paragraph (b) of this section, if CMS terminates an agreement with a PACE organization, it furnishes the PACE organization with the following:

(1) A reasonable opportunity to develop and implement a corrective action plan to correct the deficiencies that were the basis of CMS's determination that cause exists for termination.

(2) Reasonable notice and opportunity for hearing (including the right to appeal an initial determination) before terminating the agreement.

(b) CMS may terminate an agreement without invoking the procedures described in paragraph (a) of this section if CMS determines that a delay in termination, resulting from compliance with these procedures before termination, would pose an imminent and serious risk to the health of participants enrolled with the organization.