The Centers for Medicare and Medicaid Services (CMS) released on June 16 a draft of proposed regulations that would, for the first time, establish Medicare “conditions of participation” for community mental health centers. CMS’ regulatory impact analysis notes that it has certified 224 CMHCs to provide partial hospitalization services under Medicare Part B using an attestation process, rather than a survey process. The proposed rule would establish a survey process for Medicare certification that would include determinations of compliance with conditions of participation covering areas such as governance, staffing, personnel qualifications, quality assurance, active treatment, and physical environment.This would be effective 12 months after publication of a final rule. CMS is not clear how this might apply to the Medicaid status of the CMHCs participating in Medicare and the far larger universe of CMHCs participating in Medicaid only (as essential providers of Medicaid clinic and rehabilitative services). CMS will publish the proposed rule in the Federal Register on June 17 with a 60 day comment period. State Medicaid and behavioral health agencies may wish to review the proposed rule and provide comments to CMS concerning its potential impact in their states.