The California Department of Health has issued a new All Facilities Letter (AFL) outlining the state and federal requirements for reporting a change of ownership (CHOW) for skilled nursing facilities (SNFs). SNFs must submit a new licensing application for any CHOW, which is subject to full application review and approval processes. If a CHOW application is denied, the former owner must resume operating the facility. Failure to comply can result in suspension or revocation of the license. Additionally, facilities certified for participation in Medicare and/or Medi-Cal programs must notify the California Department of Public Health within 35 days after any CHOW. Non-compliance may result in the termination of the Medicare and/or Medi-Cal provider agreement. The letter also lists events that constitute a CHOW requiring notification.

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