Residential Care Facility for the Elderly (RCFE) Practice Test

Is it necessary to apply for a new license when there is a change of ownership or licensee if the facility is in substantial compliance?

1. True

2. False

The correct answer is: False

In scenarios where there is a change of ownership or licensee, it is important to understand the licensing requirements for Residential Care Facilities for the Elderly (RCFE). Generally, if a facility is in substantial compliance with regulations, a new license is not required solely due to a change of ownership. Substantial compliance means the facility meets most of the regulatory requirements and maintains an acceptable operational standard. Therefore, if the new owner can demonstrate that they will uphold these standards and continue to operate within the scope of existing regulations, the facility can typically continue under the current license without needing to apply for a new one. However, there are often specific protocols and notifications required to inform regulatory bodies of the change in ownership, and these can vary by jurisdiction. This understanding helps ensure that facilities can remain operational while facilitating transitions in ownership.