HB 6731 Summary

• Establishes comprehensive procedures for Department of Public Health review and approval of changes in ownership or beneficial ownership of health care facilities, requiring 120 days' advance notice before the effective date of any proposed change.

• Defines what does not constitute a change in ownership: changes in legal form (e.g., corporation to LLC) if beneficial ownership remains unchanged, public stock offerings that do not result in any individual or entity owning 10% or more of stock, and certain nonprofit hospital ownership transfers exempt from review.

• Requires change-of-ownership applications to include detailed information about proposed new owners, their organizational structures, five-year history of other facilities owned or operated, compliance records, civil penalties, sanctions, and criminal history disclosures.

• Authorizes the commissioner to deny applications if proposed owners fail to demonstrate character, competence, and acceptable compliance history, including evidence of adverse actions such as license suspensions, pattern violations, or criminal convictions for fraud, abuse, or crimes of violence.

• Lowers the ownership interest threshold requiring disclosure from 10% to 5% for nursing home applications and change-of-ownership notices, effective October 1, 2023.