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Starting October 1, 2023, health care facilities and institutions licensed by the Connecticut Department of Public Health (“DPH”) became subject to significant requirements that apply when the facility or institution undergoes a change of ownership (“CHOW”).

Public Act 23-122, “An Act Concerning the Department of Public Health’s Recommendations Regarding Change in Ownership of Health Care Facilities,” overhauls the current requirements for licensed health care facilities and institutions seeking DPH approval to change ownership. The Act heightens and enhances state scrutiny of prospective buyers of health care facilities, particularly nursing homes.

The Act’s new requirements apply to all health care facilities and institutions licensed by DPH, including but not limited to, hospitals, hospice facilities, residential care homes, nursing homes, home health care agencies, home health aide agencies, hospice agencies, behavioral health facilities, assisted living services agencies, outpatient clinics and surgical facilities. These requirements apply when a facility or institution will be sold to a new owner, or when there is a change in the ownership structure of the licensed entity, which is referred to as a “beneficial change of ownership.”

The following is a general summary of the key changes made to Connecticut General Statutes § 19a-493 and related action steps for individuals and providers.

Click the PDF below to read the full advisory.