---
kind: "section"
citation: "42 C.F.R. § 405.2444"
title: "42"
number: "405.2444"
heading: "Change of ownership."
url: "https://uscodex.org/cfr/42/405.2444"
---

# §405.2444. Change of ownership.

- (a) **What constitutes change of ownership—**
  - (1) **Incorporation.** The incorporation of an unincorporated FQHC constitutes change of ownership.
  - (2) **Merger.** The merger of the FQHC corporation into another corporation, or the consolidation of two or more corporations, one of which is the FQHC corporation, resulting in the creation of a new corporation, constitutes a change of ownership. (The merger of another corporation into the FQHC corporation does not constitute change of ownership.)
  - (3) **Leasing.** The lease of all or part of an entity constitutes a change of ownership of the leased portion.
- (b) **Notice to CMS.** A FQHC which is contemplating or negotiating change of ownership must notify CMS.
- (c) **Assignment of agreement.** When there is a change of ownership as specified in [paragraph (a)](#a) of this section, the agreement with the existing FQHC is automatically assigned to the new owner if it continues to meet the conditions to be a FQHC.
- (d) **Conditions that apply to assigned agreements.** An assigned agreement is subject to all applicable statutes and regulations and to the terms and conditions under which it was originally issued including, but not limited to, the following:
  - (1) **Compliance with applicable health and safety standards.**
  - (2) Compliance with the ownership and financial interest disclosure requirements of [part 420](/cfr/42/part420.md), [subpart C](/cfr/42/subpartC.md) of this subchapter.

## Notes

### Amendments

[57 FR 24978, June 12, 1992, as amended at 79 FR 25476, May 2, 2014]

### Source

Source: 57 FR 24978, June 12, 1992, unless otherwise noted.

### Authority

Authority: Secs. 1102 and 1871 of the Social Security Act (42 U.S.C. 1302 and 1395hh).

### Source

Source: 43 FR 8261, Mar. 1, 1978, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 263a, 405(a), 1302, 1320b-12, 1395x, 1395y(a), 1395ff, 1395hh, 1395kk, 1395rr, and 1395ww(k).

### Amendments

[57 FR 24978, June 12, 1992, as amended at 79 FR 25476, May 2, 2014]