N.J. Admin. Code § 8:39-2.12

Current through Register Vol. 56, No. 9, May 6, 2024

Section 8:39-2.12 - Transfer of ownership

(a) In accordance with N.J.A.C. 8:33-3.3(b), the transfer of ownership of a facility shall not require a certificate of need except when the proposed owner does not satisfy the Department's track record review.

(b) Prior to transferring ownership of a facility, the prospective new owner shall submit an application to the Division of Certificate of Need and Licensing. The application shall include the following items:

1. The transfer of ownership fee of $ 2,500 plus $ 15.00 per bed, in accordance with N.J.A.C. 8:39-2.2(b);

2. A cover letter stating the applicant's intent to purchase the facility, and identification of the facility by name, address, county, and number and type of licensed beds;

3. A description of the proposed transaction, including:

i. Identification of the current owners of the facility;

ii. Identification of 100 percent of the proposed new owners, including the names and addresses of all principals (that is, individuals and/or entities with a 10 percent or more interest); and

iii. If applicable, a copy of an organizational chart, including parent corporations and wholly owned subsidiaries;

4. A copy of the agreement of sale and, if applicable, a copy of any lease and/or management agreements; and

5. Disclosure of any licensed health care facilities owned, operated, or managed by the proposed owner or any of the principals, in New Jersey or any other state. If facilities are owned, operated, or managed in other states, letters from the regulatory agencies in each respective state, verifying that the facilities have operated in substantial compliance during the last 12 month period and have had no enforcement actions imposed during that period of time, shall be included in the application.

(c) Approval of a transfer of ownership is contingent upon a review of the applicant's track record, in accordance with N.J.A.C. 8:33-4.10 and 8:43E-5.1.

(d) Approval of a transfer of ownership is contingent upon payment of all outstanding Medicaid audit claims and State penalties issued by the Department against the current owner, or written verification by the applicant that the applicant will assume responsibility for payment of such audit findings and State penalties.

(e) When a transfer of ownership application has been reviewed and deemed acceptable, an approval letter from the Division of Certificate of Need and Licensing shall be sent to the applicant along with licensure application forms.

(f) Within five days after the transaction has been completed, the applicant shall submit the following documents to the Division of Certificate of Need and Licensing:

1. Completed licensure application forms;

2. A notarized letter stating the date on which the transaction occurred; and

3. A copy of a certificate of continuing occupancy from the local township, or a letter from the township verifying a policy of not issuing any such document for changes of ownership.

(g) For Medicaid certification, the new owner shall contact the State's Medicaid contractor at 1-800-776-6334, and online at http://www.njmmis.com/.

(h) For Medicare certification, the new owner shall contact the Department's Program Manager of Long-Term Care Survey at (609) 633-8977.

N.J. Admin. Code § 8:39-2.12

Amended by R.2004 d.160, effective 4/19/2004.
See: 35 N.J.R. 4838(a), 36 N.J.R. 1962(a).
In (b), substituted "$ 2,500" for "$ 2,000" and "$ 15.00" for "$ 10.00" in 1.
Notice of readoption with technical change, effective 12/20/2021.
See: 53 N.J.R. 2199(a).