R432-2-20. Change In Ownership

  (1) As used in this section, an "owner" is any person or entity:

  (a) ultimately responsible for operating a health care facility; or

  (b) legally responsible for decisions and liabilities in a business management sense or that bears the final responsibility for operating decisions made in the capacity of a governing body.

  (2) The owner of the health care facility does not need to own the real property or building where the facility operates.

  (3) A property owner is also an owner of the facility if he:

  (a) retains the right or participates in the operation or business decisions of the enterprise;

  (b) has engaged the services of a management company to operate the facility; or

  (c) takes over the operation of the facility.

  (4) A licensed provider whose ownership or controlling ownership interest has changed must submit a Request for Agency Action/License Application and fees to the department 30 days prior to the proposed change

  (5) Changes in ownership that require action under subsection (4) include any arrangement that:

  (a) transfers the business enterprise or assets to another person or firm, with or without the transfer of any real property rights;

  (b) removes, adds, or substitutes an owner or part owner; or

  (c) in the case of an incorporated owner:

  (i) is a merger with another corporation if the board of directors of the surviving corporation differs by 20 percent or more from the board of the original licensee; or

  (ii) creates a separate corporation, including a wholly owned subsidiary, if the board of directors of the separate corporation differs by 20 percent or more from the board of the original licensee.

  (6) A person or entity that contracts with an owner to manage the enterprise, subject to the owner's general approval of operating decisions it makes is not an owner, unless the parties have agreed that the managing entity is also an owner.

  (7) A transfer between departments of government agencies for management of a government-owned health care facility is not a change of ownership under this section.