Legal action or sale; change of ownership; effect on licensure

A.R.S. § 36-420.05, under General Provisions.

A.R.S. § 36-420.05

A. The director may continue to pursue any court, administrative or enforcement action against a licensee even if the health care institution is in the process of being sold or transferred or has closed.

B. The department may deny an application for a health care institution license if the issuance of a new license is likely to jeopardize resident or patient safety because the applicant or anyone in a business relationship with the applicant, including stockholders and controlling persons, either:

1. Has had a license to operate a health care institution denied, revoked or suspended or a license or certificate issued by a health profession regulatory board pursuant to title 32 or issued by a state agency pursuant to chapter 6, article 7 or chapter 17 of this title denied, revoked or suspended.

2. Has a licensing history of recent serious violations occurring in this state or in another state that posed a direct risk to the life, health or safety of patients or residents.

C. The department may deny the approval of a change in ownership of a currently licensed health care institution if the department determines that the transfer of ownership, whether involving a new direct owner or new indirect owner, may jeopardize patient safety because the new direct owner or new indirect owner or anyone in a business relationship with the new direct owner or new indirect owner, including stockholders and controlling persons, either:

1. Has had a license to operate a health care institution denied, revoked or suspended or a license or certificate issued by a health profession regulatory board pursuant to title 32 or issued by a state agency pursuant to chapter 6, article 7 or chapter 17 of this title denied, revoked or suspended.

2. Has a licensing history of recent serious violations occurring in this state or in another state that posed a direct risk to the life, health or safety of patients or residents.