What enforcement actions should be taken following a change in ownership?
Agency decisions concerning enforcement actions against facilities that have changed ownership must be evaluated on a case-by-case basis. The issuance of Warning Letters, initiation of sanctions under MQSA, or other actions will depend on a variety of factors, including, but not limited to, the prior compliance profile of the facility. If the adverse findings occurred only under the direction of previous owners, then initiation of enforcement actions against a facility under the new management may not be appropriate. Issues such as contractual agreements surrounding the change in ownership and information about whether a "real" change in ownership has occurred (for example, a change in corporate holding name but same principals involved) may have to be evaluated and are beyond the scope of this policy.