Pennsylvania Code
Title 31 - INSURANCE
Part VIII - Miscellaneous Provisions
Chapter 151 - CONTINUING CARE PROVIDERS
Section 151.6 - Transfers of ownership
Universal Citation: 31 PA Code ยง 151.6
Current through Register Vol. 54, No. 12, March 23, 2024
(a) Transfer of ownership of a facility.
(1) A provider intending to undertake a
transfer of ownership of a facility shall notify the Department at least 30
days in advance of the proposed settlement date.
(2) A notice of intention to transfer
ownership of a facility may be in the form of a letter, addressed to the
Department, and shall contain the following information:
(i) Name and address of the licensed provider
from whom ownership will be transferred.
(ii) Name and address of the person intending
to acquire the ownership interest.
(iii) Name and address of a facility whose
ownership is being transferred.
(iv) Proposed settlement date.
(3) No transfer of ownership of a
facility shall be consummated until the person to whom ownership is being
transferred obtains a certificate of authority.
(4) When a person to whom ownership is being
transferred files an application for a certificate of authority, in addition to
the information specified in §
151.3(d)
(relating to certificates of authority), the person shall file a statement
containing the following information:
(i) The
terms and conditions of the transfer of ownership.
(ii) The source of funds to be used to
finance the transfer of ownership and, if the funds are to be borrowed, the
name of a lender and a summary of the terms and conditions of the loan
transactions.
(iii) The plans,
arrangements, understandings and intentions of the transferee for the future
business and management of the facility, including plans as to the sale of
assets or material change in business, corporate structure or
management.
(5) A
certificate of authority will not be issued under this subsection unless the
transferee has agreed in writing to assume the contractual obligations imposed
on the current provider by its existing resident
agreements.
(b) Change in control of a provider.
(1) For purposes of this subsection, control
shall be defined as the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a provider or
facility, whether through the equitable or beneficial ownership of voting
securities or otherwise. Control of a provider or facility shall be presumed to
exist if a person, directly or indirectly, owns, controls, holds with the power
to vote, or holds proxies representing 10% or more of the voting securities of
the provider or facility. This presumption may be rebutted by a showing that
control does not exist in fact.
(2)
Upon a change in control of a provider, the provider shall notify the
Department within 30 days of the change.
(3) Notice of change in control of a provider
may be in the form of a letter, addressed to the Department, and shall contain
the following information:
(i) Name and
address of the licensed provider affected by the change in ownership or
control.
(ii) Name and address of
each person acquiring a controlling interest in the provider, and an
explanation of the nature of the acquirer's interest.
(iii) Plans, arrangements, understandings and
intentions of the acquirer for the future business and management of a facility
affiliated with the provider, including plans as to the sale of assets or
material change in business, corporate structure or management.
Disclaimer: These regulations may not be the most recent version. Pennsylvania may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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