Biden’s 2023 Proposed Budget Aims to Hold Long-Term Care Facility Owners Accountable

President Biden recently announced his Federal Fiscal Year Budget Proposal, which included a proposal to hold long-term care (LTC) facility owners accountable for noncompliant closures and substandard care.

Specifically, the proposal noted that the decision to close a LTC facility is typically due to the owner of the facility that has control over the financials and not the facility management/administrator. However, the current statutory framework places the risk of civil monetary penalties on the management/administrators rather than the owner. The proposal aims to change the law so that the individual subject to civil monetary penalty from administrator to owner, operator, or owners and operators and to add provisions to ensure enforcement action can be imposed on the owners of a facility, even after the facility has closed.

For more information on the proposal and its implications for the LTC industry, contact Change of Ownership (CHOW) attorneys Hedy Rubinger or Charmaine Mech.


The Arnall Golden Gregory Change of Ownership (CHOW) team leads all regulatory aspects of healthcare transactions for investors, operators, managers, capital partners, and developers of every size in all 50 states.  The team streamlines the regulatory process so that clients close their transactions on or ahead of schedule. Whether obtaining licensure and Medicare/Medicaid approvals, structuring transactions to expedite closings, anticipating issues to minimize cash flow disruption, negotiating regulatory terms in deal documents, creatively resolving diligence issues, or advising on CHOW guidelines and compliance, the team provides extensive experience and practical solutions. To date, the CHOW team has served as primary regulatory counsel in transactions valued at more than $25 billion.​

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