Section 330.150  Issuance of an Initial License Due to a Change of Ownership

a)         Upon receipt and review of an application for a license made under the Act and inspection of the applicant facility under the Act, the Director will issue a probationary license if they find:

1)         The individual applicant, or the corporation, partnership or other entity if the applicant is not an individual, is a person responsible and suitable to operate or to direct or to participate in the operation of a facility by virtue of financial capacity, appropriate business or professional experience, a record of compliance with lawful orders of the Department and lack of revocation of a license during the previous five years;

2)         That the facility is under the supervision of an administrator who is licensed, if required, under the Nursing Home Administrators Licensing and Disciplinary Act, as now or hereafter amended; and

3)         The facility is in substantial compliance with the Act and this Part.  (Section 3-109 of the Act)

b)         Whenever ownership of a facility is transferred from the person named in a license to any other person, the transferee shall obtain a new probationary license.  The transferee shall notify the Department of the transfer and apply for a new license at least 30 days prior to final transfer.  (Section 3-112(a) of the Act)

c)         The transferor shall notify the Department at least 30 days prior to final transfer.  The transferor shall remain responsible for the operation of the facility until a license is issued to the new transferee.  (Section 3-112(b) of the Act)

d)         The license granted to the transferee shall be subject to the plan of correction submitted by the previous owner and approved by the Department and any conditions contained in a conditional license issued to the previous owner.  If there are outstanding violations and no approved plan of correction has been implemented, the Department will issue a conditional license and plan of correction as provided in Section 3-311 through 3-317 of the Act.  (Section 3-113(a) of the Act)

e)         The license granted to a transferee for a facility that is in receivership shall be subject to any contractual obligations assumed by a grantee under the Equity in Long-term Care Quality Act and to the plan submitted by the receiver for continuing and increasing adherence to best practices in providing high-quality nursing home care, unless the grant is repaid under the Equity in Long-Term Care Quality Act.  (Section 3-113(a) of the Act)

f)         The transferee shall submit to the Department a transition plan, signed by both the transferee and the transferor, that includes, at a minimum, a detailed explanation of how resident care and appropriate staffing levels shall be maintained until the license has been obtained and the transfer of the facility operations occurs.  The transition plan shall be submitted at the same time as notice to the Department of the transfer.  The transferor and transferee shall coordinate as necessary to ensure that there are no gaps in care, staffing, and safety during the transition period.  (Section 3-112(c) of the Act)

g)         The Department will accept or reject the transition plan within 10 days after submission.  If the transition plan does not meet the minimum requirements in subsection (f) and is rejected, the Department will work with the facility, the transferee, and the transferor to bring the transition plan into compliance.  (Section 3-112(c) of the Act)

h)         If the Department finds that an entity failed to follow an accepted transition plan and ensure residents are provided adequate care during the change of ownership process, and finds actual harm to a resident, the Department will establish a high-risk designation pursuant to paragraph (9) of Section 3-305 of the Act.  The Department will issue a violation to the entity that failed to carry out their responsibility under the transition plan that resulted in the violation.  As described in this Section, the change of ownership process shall begin upon submission of the transition plan to 30 days after the transfer of the facility.  (Sections 3-112(c), 3-113(b), and 3-114 of the Act)

i)          The transferor shall remain liable for all penalties assessed against the facility that are imposed for violations occurring prior to transfer of ownership.  (Section 3-114 of the Act)

j)          If the applicant has not been previously licensed or if the facility is not in operation at the time application is made, the Department will issue only a probationary license. A probationary license will be valid for 120 days unless sooner suspended or revoked under Section 3-119 of the Act.  (Section 3-116 of the Act).

k)         Within 30 days prior to the termination of a probationary license, the Department will fully and completely inspect the facility and, if the facility meets the applicable requirements for licensure, shall issue a license under Section 3-109 of the Act, except that, during a statewide public health emergency, as defined in the Illinois Emergency Management Agency Act, the Department will fully and completely inspect the establishment within appropriate time frames to the extent feasible. (Section 3-116 of the Act) If the facility is not in compliance and satisfactory progress toward compliance is not being made, the Department will allow the probationary license to expire.

l)          If the Department finds that the facility does not meet the requirements for licensure but has made substantial progress toward meeting those requirements, the license will be renewed once for a period not to exceed 120 days from the expiration date of the initial probationary license. (Section 3-116 of the Act) Under no condition will more than two successive probationary licenses be issued.

m)        The issuance date of the probationary license to the new owner will be the date the last licensure requirement is met as determined by the Department.

n)         The licensee shall qualify for issuance of a two-year license if the licensee has met the criteria contained in Section 3-110(b) of the Act for the last twenty-four consecutive months.

(Source:  Amended at 49 Ill. Reg. 6515, effective April 22, 2025)