Effective January 1, 2025, Illinois enacted a law that contains several updates to Illinois’s change of ownership (“CHOW”) laws for nursing homes.
Changes to Illinois’ CHOW Laws
Illinois Public Act 103-0776 (“CHOW Law”) replaces Sections 3-112, 3-113 and 3-114 of the Illinois Nursing Home Care Act (the “Act”). The CHOW Law provides that nursing home owners must submit an operations transition plan upon a change of ownership.
Operations Transition Plans Required
Under the CHOW Law, the operations transition plan must include a detailed explanation of how resident care and appropriate staffing levels will be maintained until the license has been obtained and the transfer of facility operations occurs.
Specifically, the transferee shall submit to the Illinois Department of Public Health (“IPDH”) a transition plan, signed by both the transferee and the transferor, that includes, at a minimum, a detailed explanation of how resident care and appropriate staffing levels shall be maintained until the license has been obtained and the transfer of the facility operations occurs. The transition plan must be submitted at the same time as the notice to the IPDH regarding the transfer. The transferor and transferee shall coordinate as necessary to ensure no gaps in care, staffing and safety during the transition period.
State Approval Required
IPDH will not approve any change of ownership without a sufficient transition plan.
IPDH must accept or reject the transition plan within ten days after submission. If the transition plan is rejected, IPDH shall work with the facility, transferee and transferor to bring the transition plan into compliance.
Penalties
The CHOW Law calls for the imposition of penalties for the failure to provide a transition plan and ensure residents are provided adequate care during the change of ownership process.
If IPDH finds that an entity failed to follow an accepted transition plan and ensure residents are provided adequate care during the change of ownership process, and finds actual harm to a resident, IPDH shall establish a high-risk designation pursuant to the Act. IPDH shall issue a violation to the entity that failed to carry out its responsibility under the transition plan that resulted in the violation.
Practical Takeaways
Potential Illinois nursing home operators and Illinois nursing homes transferring ownership of nursing homes should keep in mind the requirements needed for the operation transition plan and the approval of such plan when negotiating and completing the purchase and sale of an Illinois nursing home.
If you have questions or would like additional information about this topic, please contact:
- Sean Fahey at (317) 977-1472 or sfahey@hallrender.com;
- Brian Jent at (317) 977-1402 or bjent@hallrender.com;
- Todd Selby at (317) 977-1440 or tselby@hallrender.com; or
- Your primary Hall Render contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
