Nursing Home Chow Documents and Process Now Available

Posted on December 15, 2022 by Kari Everson

Whenever a nursing home changes ownership, the new owner must apply for an operating license before taking over the operations of an already licensed organization. Aug. 1 amendments to the change of ownership (CHOW) process took effect. The current licensee remains responsible until the new owner is properly licensed. The Minnesota Department of Health (MDH) has the updated information and forms and process available.

Circumstances requiring a new license application

A new license application is required in the following situations:

• 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
  • a person 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.

Resources for information on the legislative change

Minnesota Statutes 144A contains language on the changes to change of ownership. Information is located in Minnesota Statutes Section 144A.01, 144A.03, 144A.04, and 144A.06.