Change of Ownership

On a change of ownership in a certified facility, the provider agreement is generally assigned to the buyer along with its history, including open plans of correction and any sanctions in effect, unless the buyer elects otherwise and accepts the consequences of that election.

This is why the clean-asset-purchase intuition is weaker in licensed care than elsewhere. The compliance history travels with the building, plaintiffs will name the current operator for pre-closing conduct regardless of the deal structure, and states apply successor liability doctrines to health care operations. Plan the insurance around that. Settle in the purchase agreement whether the seller buys a tail or your program grants prior acts back before the seller owned it, with the cost allocated. Get five years of loss runs by claim rather than summarized, open claim detail with reserves, the full survey history, and the incident log, because open incidents that have not yet become claims are the exposure diligence most often misses. Then notice every known incident to your carrier as a circumstance in the first thirty days.