What is a change of ownership (CHOW) in assisted living?
Direct answer
A change of ownership, or CHOW, is the state licensing process a new operator must complete before it can legally run a community it has bought. Licenses generally do not transfer with the sale, so the CHOW is how the buyer becomes the licensed operator.
What to know
The CHOW sits on the critical path of every acquisition. It commonly takes 90 to 180 days, and in California, where assisted living is licensed as Residential Care Facilities for the Elderly through the Department of Social Services, it can take 3 to 12 months.
Skilled nursing is more involved: a Medicare and Medicaid CHOW is required in addition to the state process, and nursing homes must be run by a state-licensed nursing home administrator.
Because of the CHOW, closings are sequenced. The seller usually keeps operating under its existing license until the buyer's license is issued, and the purchase agreement defines who is responsible for what during the gap.
How Haven helps
Haven manages CHOW timing within every sale so the license, the money and the handover land together. Read our change-of-ownership licensing guide.
Related questions
- How do licensing requirements affect an assisted living acquisition?
- How do I manage licensing and compliance review across multiple states?
- Can an assisted living license transfer to a new owner?
- How long does a change of ownership take for assisted living?
- Does assisted living real estate qualify for a 1031 exchange?