(a)  No provider and no person or entity owning a provider shall sell or transfer, directly or indirectly, more than fifty percent (50%) of the ownership of the provider or of a continuing care facility without giving the department written notice of the intended sale or transfer at least thirty (30) days prior to the consummation of the sale or transfer. A series of sales or transfers to one person or entity, or one or more entities controlled by one person or entity, consummated within a six (6) month period that constitutes, in the aggregate, a sale or transfer of more than fifty percent (50%) of the ownership of a provider or of a continuing care facility shall be subject to the foregoing notice provisions.

Terms Used In Rhode Island General Laws 23-59-7

  • Continuing care: means providing or committing to provide board, lodging, and nursing services to an individual, other than an individual related by blood or marriage: (i) pursuant to an agreement effective for the life of the individual or for a period in excess of one year, including mutually terminable contracts, and (ii) in consideration of the payment of an entrance fee and/or periodic charges. See Rhode Island General Laws 23-59-1
  • Contract: A legal written agreement that becomes binding when signed.
  • Department: means the Rhode Island state department of health. See Rhode Island General Laws 23-59-1
  • Facility: means the place or places in which a person undertakes to provide continuing care to an individual. See Rhode Island General Laws 23-59-1
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • Provider: means any person, corporation, partnership, or other entity that provides or offers to provide continuing care to any individual in an existing or proposed facility in this state. See Rhode Island General Laws 23-59-1

(b)  A provider or continuing care facility that shall change its chief executive officer, or its management firm if managed under a contract with a third party, shall promptly notify the department and the residents of each change of chief executive officer or management firm.

History of Section.
P.L. 1987, ch. 101, § 1; P.L. 1997, ch. 326, § 92.