Colorado Nursing Home Administrators (NHA) Practice Exam

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When is it considered a change of ownership in the context of management contracts, leases, or other operating arrangements?

When there is a change in managerial personnel
When the owner retains some authority over operations
When the lease or agreement has a duration of more than one year
When the owner retains no authority or responsibility for the operation and management of the healthcare facility

The correct answer is: When there is a change in managerial personnel

A change of ownership in the context of management contracts, leases, or other operating arrangements occurs when there is a change in the ownership structure or ownership entity of a healthcare facility. This means that the legal owner of the facility changes, which can happen for various reasons such as mergers, acquisitions, or buyouts. Option B is incorrect because while the owner may retain some authority over operations, as in the case of a management contract, the legal ownership of the facility remains unchanged. Option C is incorrect because the duration of a lease or agreement does not necessarily determine a change of ownership. A change in ownership can occur even if the lease or agreement has a shorter duration. Option D is incorrect because even if the owner retains no authority or responsibility for the operation and management of the healthcare facility, the legal ownership remains the same. It is only considered a change of ownership if the legal owner of the facility changes.