4108. ACQUISITIONS

4108 ACQUISITIONS 4108.1 No person shall acquire an existing HCF by purchase, lease, or other arrangement to acquire effective control over a facility without first obtaining a CON. 4108.2 For purposes of this section, the phrase “acquire effective control” includes: (a) A transfer, assignment or other disposition of fifty per cent (50%) or more of the stock, voting rights thereunder, ownership interest, or operating assets of the corporation or entity; (b) A transaction resulting in a person, or a group of persons acting in concert, owning or controlling, directly or indirectly, fifty per cent (50%) or more of the stock, voting rights thereunder, ownership interest, or operating assets of the corporation or entity; (c) A transaction resulting in a person, or a group of persons acting in concert, having the ability to elect or cause the election of a majority of the board of directors of a corporation or entity; or (d) A conversion that results in selling, transferring, leasing, exchanging, conveying, or otherwise disposing of, directly or indirectly, all the assets or a material amount of the assets of a nonprofit HCF to a for-profit entity, whether a corporation, mutual benefit corporation, limited liability partnership, general partnership, joint venture, or sole proprietorship, including an entity that results from, or is created in connection with, the conversion. SOURCE: Final Rulemaking published at 29 DCR 5569 (December 17, 1982), enacting Proposed Rulemaking published at 29 DCR 4742 (October 29, 1982); as amended by Final Rulemaking published at 61 DCR 1666 (February 28, 2014). District of Columbia Municipal Regulations Public Health and Medicine 22-B DCMR § 4108