Change of Ownership Process in NCTracks

Change of Ownership (CHOW) process:

A CHOW is constituted by:

(1)        In the case of a partnership, the removal, addition, or substitution of a partner, unless the partners expressly agree otherwise, as permitted by Chapter 59 of the General Statutes.

(2)        In the case of a Limited Liability Company (LLC), the withdrawal or removal of a member, or when a person acquires a membership interest from the LLC or when a business entity converts or merges into the LLC pursuant to Chapter 57A of the General Statutes.

(3)        In the case of an unincorporated sole proprietorship, the transfer of title and property of the provider that constitute the provider's business of providing services, goods, supplies, or merchandise to a Medicaid or Health Choice recipient to another party.

(4)        The merger of the provider corporation into another corporation, or the consolidation of two or more corporations, resulting in the creation of a new corporation. Transfer of corporate stock or the merger of another corporation into the provider corporation shall not constitute change of ownership. Merger of related provider corporations shall not constitute a change in ownership

(5)        The lease of all or part of a provider's facility that will continue to be utilized

Processing a CHOW in NCTracks

There are two scenarios to consider when processing a CHOW in NC Tracks:

1.  When all service locations are being purchased by buyer:

• The seller is required to submit a MCR in NC Tracks to terminate their record. The seller will remove all active health plans, enter the end date (the end date should be the (CHOW) transaction date), and select “Provider Terminated due to change of ownership” as the reason for ending coverage.
• Once the record is terminated in NCTracks, the buyers will need to submit an initial enrollment application. The buyer can transfer the sellers NPI, but we strongly encourage the buyer to retrieve a new NPI. The EIN is not transferable.

2.  Processing a CHOW when the seller is keeping one or more service location:

• The seller is required to submit a MCR to end-date the specific service location(s) being sold.
• Buyer can submit an initial enrollment application.

Note:  Either scenario we strongly suggest the seller to submit the MCR 30 days prior to the CHOW transaction date. The MCR will not allow the health plans to be ended with a past date. The seller can only enter a current or future date when ending the health plans.

If the previous owner is unable to terminate the record, the new owner can request to have the record terminated by submitting a written request and one of the following documentation as proof of the change in ownership:

• Bill of Sale
• Stock Transfer Agreement
• Letter relinquishing ownership from old owner
• Executed lease purchasing Agreement 

Supporting documentation can be submitted to NCTracks via:

Fax #: 855.710.1965
E-mail: NCTracksprovider@nctracks.com  
Mailing Address: CSC, PO Box 300009 Raleigh, NC 27622-8009