Section 489.12 - Decision to deny an agreement(a)Bases for denial. CMS may refuse to enter into an agreement for any of the following reasons:(1) Principals of the prospective provider have been convicted of fraud (see § 420.204 of this chapter);(2) The prospective provider has failed to disclose ownership and control interests in accordance with § 420.206 of this chapter;(3) The prospective provider is a physician-owned hospital as defined in § 489.3 and does not have procedures in place for making physician ownership disclosures to patients in accordance with § 489.20(u) ; or(4) The prospective provider is unable to give satisfactory assurance of compliance with the requirements of title XVIII of the Act.(c)Compliance with civil rights requirements. CMS will not enter into a provider agreement if the provider fails to comply with civil rights requirements set forth in 45 CFR parts 80, 84, and 90, subject to the provisions of § 489.10 .45 FR 22937, Apr. 4, 1980, as amended at 51 FR 34833, Sept. 30, 1986; 54 FR 4027, Jan. 27, 1989; 59 FR 6578, Feb. 11, 1994; 59 FR 56251, Nov. 10, 1994; 72 FR 47413, Aug. 22, 2007