Can You Operate While Your AHCA Change of Ownership Is Pending? Mistakes to Avoid in Florida Business Acquisitions

If you are acquiring a medical business in Florida, one of the most dangerous assumptions you can make is believing you can simply take over operations while your AHCA Change of Ownership is in process. Acting too soon, or structuring the deal incorrectly, can trigger licensing problems and costly delays.

At Howell, Buchan & Strong, we often advise buyers who relied on non-lawyer consultants or attorneys who do not practice Florida health care law. Health care acquisitions involve strict licensure rules, and misunderstandings about when a buyer can legally operate are a common source of enforcement risk.

Operating Before Approval Can Create Serious Risk

In many cases, a buyer may not legally operate a licensed health care facility until the AHCA Change of Ownership has been properly filed and approved, or until specific regulatory requirements are met. Taking control too early, even with good intentions, can expose the buyer to allegations of unlicensed activity. That can lead to fines, application delays, or even denial of licensure.

Management agreements, consulting arrangements, or informal “early transition” plans must be carefully structured so they do not amount to an unauthorized transfer of control. What seems like a practical business solution can raise red flags with regulators if not handled properly.

When Real Estate Is Part of the Deal

Many health care acquisitions also involve commercial real estate. The real estate transaction may close separately from the purchase of the health care business, but both must be coordinated carefully. Errors in how property ownership is transferred can complicate or delay the AHCA Change of Ownership process.

Our firm includes licensed real estate professionals who work alongside our health care attorneys to ensure both the business acquisition and the property transaction are structured correctly. This coordination is especially important when mortgages are involved, since mortgages generally are not transferable. Buyers sometimes assume that signing a stock purchase agreement automatically transfers all real estate interests, which is often not the case.

We have seen situations where this misunderstanding delayed licensure approval because AHCA required clarification of who truly controlled the facility premises.

Correcting Mistakes Made by the Wrong Advisors

We are frequently retained to fix problems created by advisors who lacked experience in Florida health care transactions. These issues may involve improperly structured agreements, unclear ownership of real estate, or arrangements that inadvertently transfer operational control before the AHCA Change of Ownership is approved.

Each of these mistakes can delay the licensing process and increase the risk that AHCA questions the transaction. In some cases, buyers have had to renegotiate contracts or amend filings after the fact, adding time and expense to an already complex deal.

Coordinate Licensing, Operations, and Real Estate

A successful acquisition requires careful coordination between the purchase agreement, financing documents, operational transition, and real estate transfer. All of these pieces must align with AHCA Change of Ownership requirements so the buyer can legally operate without interruption.

The experienced health care and real estate attorneys at Howell, Buchan & Strong guide clients through both the licensing and property aspects of their transactions. We help structure deals to reduce regulatory risk and avoid delays that can threaten your investment.

To schedule a free consultation, contact Howell, Buchan & Strong, Attorneys at Law, at 850-877-7776 or by email at lawyerhelpnow@jsh-pa.com. We assist health care professionals throughout Florida, as well as out-of-state clients, with licensing and regulatory matters under Florida law.

Continue Reading About AHCA Change of Ownership in Florida

Buying a healthcare business involves more than a contract and a closing date. Learn how to avoid the most common regulatory and licensing mistakes:

➡️ Thinking of Buying a Florida Healthcare Business? Read This Before an AHCA Change of Ownership
What every buyer should review before signing a deal, including licensure risks and transaction structure.

➡️ Inside the AHCA Change of Ownership Process: What Florida Buyers Get Wrong
A breakdown of the CHOW application, required disclosures, background screening, and common filing delays.

➡️ When an AHCA Change of Ownership Goes Wrong: How to Limit the Fallout
How due diligence failures, license problems, and non-assignable contracts can derail a transaction.