A NF is considered a provider for purposes of this part when it has in effect an agreement to participate in Medicaid, including an agreement to participate in both Medicaid and Medicare and it is a—

1. (a) State-operated NF; or

2. (b) Non State-operated NF that is subject to compliance action as a result of—

   1. (1) A validation survey by CMS; or
   2. (2) CMS's review of the State's survey findings.

[59 FR 56252, Nov. 10, 1994]