Georgia Licensing Now Requiring Affidavit of Financial Stability in Support of Initial and Change of Ownership Applications
|Footnotes for this article are available at the end of this page.|
In response to media reports regarding alleged deficient practices in some of Georgia’s long-term care facilities, House Bill 987 (“HB 987”) was signed into law on June 30, 2020, amending Title 31 of the O.C.G.A. The new law contains a number of measures intended to increase protection for residents in assisted living communities and personal care homes. These measures are discussed in an article titled, “Georgia Assisted Living Communities and Personal Care Homes Now Must Contend with Additional Compliance Obligations and Larger Fines,” previously published by the CHOW team of Arnall Golden Gregory LLP.1
Among the new measures is a requirement that applicants for initial facility licenses or changes of ownership submit an Affidavit of Financial Stability. This requirement only applies to licenses for assisted living communities and personal care homes with 25 beds or more. Although the form Affidavit provides that the requirement is effective July 1, 2021, we are only now beginning to see the Georgia Department of Community Health (“Department”) enforce this requirement. On February 3, 2022, the Department updated the Assisted Living Communities Licensure Application Packet and Personal Care Home Application Packet to include the Affidavit.
The single-page Affidavit must be completed and signed by a Certified Public Accountant (“CPA”), licensed in the state of Georgia, who can state that he or she has personally reviewed the financial resources of the applicant for licensing and can attest that the applicant has the financial resources to operate as a going concern for the next two years. The CPA’s signature must be notarized. The application materials for both assisted living communities and personal care homes, including the Affidavit, are available on the Department’s Licensure Forms & Applications webpage. For more information, please contact Hedy Rubinger or Sarah Steputis.
 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.
- Hedy Silver Rubinger
- Sarah Steputis