When a nursing home changes hands, the transition period is one of the highest-risk events for resident safety and continuity of care. Since regulations were updated in late 2022, Pennsylvania has made strides in vetting incoming owners and operators. However, we still lack a statutory, pre-transfer licensure requirement that ensures a new operator is fit to lead before they take control.
The consequences of unvetted transitions are not hypothetical. As seen with the bankruptcies of Genesis, Comprehensive, Bedrock and countless others, financial instability can quickly cascade into threats to the health and safety of our most vulnerable citizens. Without a formal "Change of Operator" (CHOP) process and real accountability for “Change of Ownership” (CHOW), unvetted entities can assume management of medically complex residents without meaningful state review of their track record or financial durability.
My legislation, modeled after successful bipartisan reform recently enacted in both Virginia and Ohio, closes this gap by requiring operators to earn state approval before assuming daily operations. This bill ensures that regulators can evaluate competency and stability before a single resident is affected.
Key Provisions of the Bill:

• Mandatory Pre-Transfer Licensure: Requires any entity seeking to assume daily operations of a nursing home to obtain a formal "change of operator" license prior to taking control. Under current regulation, DOH is only given notice after a change of operator has occurred.
• Full Ownership Transparency: Mandates the disclosure of all ownership structures, including any individual or entity holding a five percent or greater stake.
• Performance Accountability: Requires applicants to provide a documented five-year history of facilities they have managed, including any bankruptcies, license suspensions, or revocations.
• Proven Experience: Establishes a minimum requirement of five years of relevant operational experience for any incoming operator.
• Financial Safeguards: Introduces a financial bond requirement of $10,000 per licensed bed, held for five years. This bond is accessible to the Commonwealth if the operator faces bankruptcy, license revocation, or placement on the federal Special Focus Facility list and ensures stability for residents and workers without forcing taxpayers to foot the bill.
• Operational Readiness: Requires detailed, pre-approved plans for staffing, quality assurance, and risk management.
• Strict Enforcement: Implements civil penalties of $2,000 per day for entities that fail to apply for a license or submit fraudulent information.

 
This is a common-sense, resident-first protection. A well-structured change of operator process does not burden responsible, high-quality providers; rather, it weeds out bad actors before they ever reach a resident’s bedside.
As other states take action to protect their most vulnerable residents, we cannot allow Pennsylvania to become a refuge of unqualified, uncommitted or unethical operators. I invite you to join me in cosponsoring this vital legislation to ensure that Pennsylvania’s long-term care population is protected by the highest standards of accountability.