RALNA Texas Regulatory Update, June 9, 2022


Texas is enacting a new rule to make it easier to handle a change of ownership transition.

The purpose of the proposal is to authorize the Texas Health and Human Services Commission HHSC to issue a temporary change of ownership license in the name of the new owner of an assisted living facility (ALF) and to complete a health inspection while the new owner holds this temporary change of ownership license.

The proposed amendment also authorizes HHSC to extend the duration of the temporary change of ownership license to allow HHSC additional time to perform the health inspection of the ALF.

The proposed amendments also allow HHSC, under certain circumstances, to waive the requirement for an applicant to submit a complete application at least 30 days before the anticipated date of the change of ownership.

The proposed amendments also update the licensure process relating to change of ownership and
addresses the process for a license holder to change its name when the facility does not undergo a change of ownership

It is estimated that this rule change will decrease the time it takes for HHSC to issue a license in the incoming owner’s name based on a change of ownership. The issuance of a temporary change of ownership license in the incoming owner’s name allows the new owner to begin operational processes while HHSC is completing the health inspection of the facility, such as entering contracts for leasing, lending, and Medicaid. Subsequently, the new owner can begin Medicaid billing and receive funding sooner, which will have a positive impact on the residents being served by the facility.

Another anticipated public benefit is a decrease in the transition time for the change of ownership, which will help both the outgoing and incoming owners of a facility in terms of business processes.

For precise details on the change of ownership procedures, please refer to the text of the regulation.

To view bills and regulations that we’re watching, go to RALNA’s real-time tracking boards:

2022 Legislative Tracking Board

2022 Regulatory Tracking Board

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