1. (a) Termination by FQHC. The FQHC may terminate its agreement by—

   1. (1) Filing with CMS a written notice stating its intention to terminate the agreement; and
   2. (2) Notifying CMS of the date on which the FQHC requests that the termination take effect.

2. (b) Effective date.

   1. (1) Upon receiving a FQHC's notice of intention to terminate the agreement, CMS will set a date upon which the termination takes effect. This effective date may be—

      1. (i) The date proposed by the FQHC in its notice of intention to terminate, if that date is acceptable to CMS; or
      2. (ii) Except as specified in paragraph (2) of this section, a date set by CMS, which is no later than 6 months after the date CMS receives the FQHC's notice of intention to terminate.

   2. (2) The effective date of termination may be less than 6 months following CMS's receipt of the FQHC's notice of intention to terminate if CMS determines that termination on such a date would not—

      1. (i) Unduly disrupt the furnishing of FQHC services to the community; or
      2. (ii) Otherwise interfere with the effective and efficient administration of the Medicare program.
   3. (3) The termination is effective at the end of the last day of business as a FQHC.

3. (c) Termination by CMS.

   1. (1) CMS may terminate an agreement with a FQHC if it finds that the FQHC—

      1. (i) No longer meets the requirements specified in this subpart; or

      2. (ii) Is not in substantial compliance with—

         1. (A) The provisions of the agreement; or
         2. (B) The requirements of this subpart, any other applicable regulations of this part, or any applicable provisions of title XVIII of the Act.
   2. (2) Notice by CMS. CMS will notify the FQHC in writing of its intention to terminate an agreement at least 15 days before the effective date stated in the written notice.
   3. (3) Appeal. A FQHC may appeal CMS's decision to terminate the agreement in accordance with part 498 of this chapter.
4. (d) Effect of termination. When a FQHC's agreement is terminated whether by the FQHC or CMS, payment will not be available for FQHC services furnished on or after the effective date of termination.

[57 FR 24978, June 12, 1992, as amended at 79 FR 25476, May 2, 2014]