NJDOH Puts Licensed Facilities on Notice Over Ownership Transfers

NJDOH Puts Licensed Facilities on Notice Over Ownership Transfers - Healthcare Law Alert - September 2026 - Brach Eichler
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Published: 9/16/2026

In a September 3, 2026 guidance memorandum, the New Jersey Department of Health (Department) announced that it is resuming the assessment of penalties against licensed facilities that transfer ownership interests without obtaining the Department’s approval.  If the Department discovers that a transfer of ownership was performed without Department approval after September 30, 2026, the Department will assess a penalty of $500 per day from the date of the transfer to the date of discovery by the Department.

Under New Jersey law, transfers of ownership of licensed healthcare facilities, including licensed ambulatory surgery centers, licensed imaging facilities, and other licensed ambulatory care facilities, require prior Department approval, with limited exceptions.  This includes transfers of ownership that result in an individual who previously held less than a 10 percent ownership interest acquiring an ownership interest of 10 percent or more.  Such transfers of ownership interest require prior Department approval.  In contrast, transfers of ownership that result in an individual owning less than a 10 percent ownership interest only require 30 days prior written notice to the Department of the ownership change.

Licensed facilities cannot simply wait until licensure renewal to update their ownership information with the Department.  A licensed facility must provide timely notice and/or obtain any required approval from the Department before a transfer of ownership is completed.

We Can Help.

Brach Eichler’s Healthcare Law attorneys can assist licensed facilities with ownership changes, including determining whether Department approval is required and assisting with the application and approval process.

John D. Fanburg, Esq., Managing Member and Chair, Healthcare Law, jfanburg@bracheichler.com, 973.403.3107

Edward Hilzenrath, Esq., Member, Healthcare Law, ehilzenrath@bracheichler.com, 973.403.3114

Vanessa Coleman, Esq., Associate, Healthcare Law, vcoleman@bracheichler.com, 973.364.5208

*This is intended to provide general information, not legal advice. Please contact the authors if you need specific advice.

Related Practices:   Healthcare Law

Related Industry:   Healthcare