Provider Letter No. 17-38 – the Health and Human Service Commission (HHSC) added new rules and amended existing rules regarding the change of ownership (CHOW) process for ALFs. According to the letter, under the amended rules, a CHOW occurs when the federal tax identification number of the license holder changes. When the number changes, the incoming license applicant must apply for an initial license and submit the required documents as required by §92.12(b), which states that an applicant must complete the application in accordance with the instructions provided with the application. The license applicant must also submit Form 3725, Licensure Change of Ownership Affidavit.
The amended rules allow HHSC to conduct a desk review, instead of an onsite health inspection, for a CHOW under certain conditions. A desk review may be conducted for a CHOW if the ALF was required to obtain a new tax identification number and:
• less than 50% of the direct or indirect ownership interest has changed; or
• every owner with a disclosable interest remains the same with the new license holder.
For more details review Provider Letter No. 17-38 and If you have questions regarding the license application process, the CHOW process or required documents, please contact the Licensing Unit at (512) 438-2630.