Alabama Governor Amends, Clarifies CON Law for Easier Transactions

US CapitolAlabama Governor Robert Bentley signed revisions to the state's certificate of need law, expanding CON provisions to limited liability companies and making change of ownership transactions easier, according to a report from Bradley Arant Boult Cummings.

The new amendment signed into law clarifies "that transactions involving the sale, lease or change of ownership of CON-owning entities are not subject to CON review," according to the report. Previous cases involving surgery center transactions found that a CON could only be transferred through purchasing all of the corporation's stock, and that limited liability company CONs could not be transferred to a separate and unrelated LLP.

However, there are limits to the change of ownership acquisition for CON holders, and just because healthcare entities no longer need approval by the CON Review Board to engage in ownership transactions does not mean they are private affairs, according to the report.

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