Healthcare Transaction License Transfers in California?

June 09, 2025

by a searcher from Cornell University in Minneapolis, MN, USA

Wondering if anyone has experience with the healthcare license transfer process in California or other high reg states. We are under LOI for a medicare-certified home health agency there. My understanding is that in a stock sale, the Medicare license goes with the LLC, so no issue there. However, the state CA license will still require a de novo application, which can take as long as 12 months to get approved. So how do you navigate closing with this timeline? Is a managed-service agreement required? Any recommendations for attorney's who understand M&A in this space?

Reply by a professional
from Pace University in New York, NY, USA

Since the seller is an LLC rather than a corporation, we’ve opted to proceed with a Membership Interest Purchase Agreement (MIPA) for the acquisition of the urgent care business. This structure allows for the purchase of the seller’s membership interests, enabling continuity in operations—particularly with respect to existing contracts and payment flows—under the same legal entity. Seller will remain for some time after closing. DM me at redacted if you want to chat.

Reply by a professional
from Dartmouth College in Los Angeles, CA, USA

Hi James, my firm has a healthcare attorney with specific M&A experience who can likely help, though we'd need to know more about the deal. Email is redacted if you want to set up a time to chat.

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