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 -
(a) State-operated NF; or
(b) Non State-operated NF that is subject to compliance action as a result of -
(1) A validation survey by CMS; or
(2) CMS's review of the State's survey findings.
[59 FR 56252, Nov. 10, 1994]