Long-term care facilities disclose owners and buyer histories

Long-term care facilities disclose current owners to the state and the public. A facility owner is a person with at least a 5% direct or indirect ownership or controlling interest in a long-term care facility. For an owner that is an entity or affiliate that is not a publicly traded corporation or nonprofit corporation, the disclosure includes all controlling persons. Brochures used in direct consultation with potential residents and their families must direct readers to the facility and department websites for ownership information. A facility must update its disclosure within 30 days after any change to the information.

A proposed new facility owner discloses its recent facility history to the state. The proposed owner reports licensed long-term care facilities that it or its affiliates owned, operated, or managed in any U.S. state or territory or the District of Columbia. The disciplinary actions must relate to a material risk to a resident’s health, safety, or welfare. The facility history and disciplinary actions reported cover the preceding year.

Current and new facility owners notify current residents about a transfer. Notices go to each current resident and, when applicable, the resident’s authorized representative. The first notice follows department approval of the ownership paperwork; the second follows issuance of a license under the new owner. The notice rules do not apply if a binding sale agreement was signed or a required application was submitted before the act’s effective date. The current owner must notify residents within 30 days after receiving approval of the ownership paperwork. The new owner must send the second notice within 30 days after the department issues its license.