Assembly Bill (AB) 2673
Frequently Asked Questions
1. How does an applicant
who intends to submit a CHOW application to
CDPH for approval request an exception
to the five-year prohibition for CHOWs?
A CHOW applicant who is seeking an exception to the five-year prohibition on CHOW applications due to extenuating circumstances, must submit a written justification to prove either (1) a need to ensure continuity of care for existing patients, or (2) both a financial hardship and an unmet need of hospice services in the hospice agency's geographic service area.
Mail the written justification and documentary evidence to:
California Department of Public Health
Licensing and Certification Program
Centralized Applications Branch
P.O. Box 997377, MS 3207
Sacramento, CA 96899-7377
2. When can a licensed
hospice agency CHOW?
A hospice agency
may CHOW five years after the date the license was initially issued to the current
licensee. For example, if a hospice agency’s license was issued effective
December 1, 2022 (either as an initial licensure or upon a CHOW), a hospice agency
that does not meet the exception criteria
cannot CHOW until December 1,
2027, pursuant to AB 2673.
3. What happens
if a CHOW application is submitted within
five years of the licensee’s license effective date?
The CHOW application must be denied unless the hospice agency submits a written justification demonstrating the application meets the exception criteria (See All Facilities Letter (AFL) 22-28 header Five-Year Prohibition on CHOWs for additional criteria). If CDPH grants the exception, CDPH will notify the agency they may submit the CHOW application to CDPH for review and consideration. If the CHOW is approved, the new licensee will be subject to the five-year CHOW prohibition.
4. What happens
if a CHOW occurred, and the prospective licensee failed to submit an application to CDPH for review
and approval?
A license is not transferable. If an unapproved
change of ownership occurred without proper notification by the proposed owner
and approval by CDPH, the current licensee’s (licensee of CDPH records) license
may be revoked for non-compliance with licensing requirements and the new operator
will not be issued a license.
5. What if an applicant wants to change the geographic service area when a
change of ownership occurs, and a
CHOW application is submitted?
If the hospice agency’s approved geographic service
area will change upon the change in ownership, the new applicant
for licensure must demonstrate
unmet need for hospice services for any new service area. CDPH must approve the
proposed change in geographic service area prior to the hospice agency operating
in the new geographic service area.
6.Does AB 2673 have any impact on changes of stock transfer (CHST)?
CDPH will continue to review hospice agency CHST applications under the current process in the order they are received. However, effective January 1, 2023, AB 2673 amends Health and Safety Code (HSC) section 1755 to permit CDPH to deny any application for licensure, or suspend or revoke any license issued, for failure by a hospice agency to report a change in owner, hospice agency management personnel, service area, or location.
7. If a hospice agency
is already licensed and has an active administrator, administrator designee,
director of patient care services (DPCS), DPCS
designee, medical director, or contracted medical
director; do they need to submit a new application packet for
those individuals?
Yes. Licensed hospice
agencies are required
to have an administrator,
administrator designee, DPCS, DPCS designee, and a medical director or
contracted medical director. A hospice agency must submit an application to
CDPH to report this information on a one-time basis no later than March 31,
2023, pursuant to AB 2673. Additionally, a hospice agency must submit an
application to report a change in any of these five management personnel within 10 business days of the change. Additional requirements related to management personnel (and all other provisions of AB 2673) are detailed in AFL 22-28.
Please ensure to include a cover letter indicating the intent of reporting the administrator, administrator designee, DPCS, DPCS designee, and a medical director or contracted medical director is to comply with AB 2673.
8. Is the moratorium on new hospice
agency licenses still ongoing?
Yes. Effective January 1, 2023, the current moratorium on new hospice agency licenses under HSC Division 2, Chapter 8.5, Article 2.3 is extended until CDPH develops emergency hospice agency
regulations, but no later than January 1, 2025.