Mergers

There may be occasions when providers accredited by MMS merge with each other or with non-accredited health care organizations.  Should a merger occur, it is the responsibility of the accredited provider to notify MMS of this restructure.  Such mergers are considered to be a substantial change and may require the Committee on Accreditation Review to re-evaluate a provider at any time less than the period specified for current accreditation. This re-evaluation may require that an Interim Report be submitted and that the new corporate entity/controlling entity be considered for accreditation as a new provider.  In all instances, the usual MMS accreditation procedures will apply.

In all situations where a site survey is required, the new corporate entity/controlling entity will be given a period of time set by the Committee on Accreditation Review, in which to submit a new Accreditation Application.  If the new corporate entity/controlling entity meets the submission deadline, the Committee will extend the existing accreditation to cover CME activities offered by the new corporate entity/controlling entity until a site survey has taken place and an accreditation decision has been made.  If the application is not received by the deadline, then accreditation will be withdrawn as of that date, and the new corporate entity/controlling entity will no longer be able to award AMA PRA Category 1 credit to its CME programs.

Mergers Requiring the Submission of an Interim Report:  Site Survey May be Required

  1. A new health care corporate entity is created by the merger between accredited organizations, and the separate organizations cease to exist.
  2. A merger occurs between accredited organizations, one of the organizations assumes corporate control, and while a new corporate entity is not created, the other accredited organization ceases to exist as a separate entity.
  3. A merger occurs between an accredited organization and a non-accredited organization, the accredited organization assumes corporate control, and, while a new corporate entity is not created, the non-accredited organization ceases to exist as a separate entity.

A site survey may be required for the new corporate entity/controlling entity.  In making this decision, factors that the Committee on Accreditation Review will consider are: the degree of change or continuity in the new corporate entity/controlling entity’s CME committee (what percentage of membership of the organization's CME Committee is retained from the previously accredited entity); the relative size of the merging entities (will a large entity assume corporate control of a small entity or vice versa ); changes/continuity in the medical staff (is the majority of the combined medical staff from the accredited organization);  the creation of one set of medical staff bylaws; changes in the audience served by the CME program, and the degree to which all physicians' needs are addressed by the new corporate entity/controlling entity's CME needs assessment process.

Mergers Requiring a Current Provider to Seek Accreditation as a New Provider

In the following merger situation, the Committee on Accreditation Review will require the new corporate entity/controlling entity to seek accreditation as a new provider:

  1. A new health care corporate entity is created by the merger between an accredited and a non-accredited organization and the separate organizations cease to exist.
  2. A merger occurs between an accredited and a non-accredited organization, the non-accredited organization assumes corporate control, and, while a new corporate entity is not created, the accredited organization ceases to exist as a separate entity.

Should the new corporate entity/controlling entity be successful in achieving accreditation, it would receive either a one year or a two year provisional accreditation, which are the accreditation terms available to new providers.  Because this is considered to be a new application, the standard survey fee will be due upon submission of the accreditation application.

Mergers Having No Effect On Existing Accreditation

Finally, if a merger occurs where a new corporate management structure is created, but health care facilities, and most importantly, medical staffs, maintain separate identities and separate medical staff laws, then each accredited organization can maintain its accreditation and may jointly provide CME activities with its non-accredited merger partners.

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