Nursing Home
Change of Ownership

• Change of Ownership Process
• Frequently-Asked Questions

A new license is required whenever there is a change of ownership, and the prospective licensee must apply for a license prior to operating a currently licensed nursing home. The licensee must change whenever one of the following events occur:

• A licensee's legal entity structure, such as an LLC or a corporation, is converted or changed to a different type of legal entity structure;
• The licensee dissolves, consolidates, or merges with another legal organization and the licensee's legal organization does not survive;
• Within the previous 24 months, 50% or more of the licensee's ownership interest is transferred, whether by a single transaction or multiple transactions to:
  • a different person or multiple different persons; or
  • a person or multiple different persons who had less than a five percent ownership interest in the facility at the time of the first transaction; or
  • Any other event or combination of events that results in a substitution, elimination, or withdrawal of the licensee's responsibility for the facility.

Note that the current licensee remains responsible for the operation of the nursing home until the nursing home is licensed to the prospective licensee. The licensee is legally responsible for the management, control, and operation of the nursing home.

You can find information regarding the recent legislative changes impacting the nursing home change of ownership process at the following links:

• Minn. Statutes Section 144A.01
• Minn. Statutes Section 144A.03
• Minn. Statutes Section 144A.04
• Minn. Statutes Section 144A.06

Change of Ownership Process

The Change of Ownership (CHOW) License Application and addenda are available below.

A completed CHOW license application must be submitted at least 60 days before the requested date for licensure and must be accompanied by a license fee (Minnesota Rules, chapter 4658.0025).

The completed application will be required for final approval.

• Nursing Home Change of Ownership License Application (PDF)

Send the completed application, along with appropriate payment, to the address listed below:
Minnesota Department of Health
Health Regulation Division
PO Box 64900
St. Paul, MN 55164-0900

Questions can be directed to Health.HRD-FedLCR@state.mn.us.

Frequently-Asked Questions