Pennsylvania lawmakers want every nursing home buyer to post a surety bond - $10,000 for each licensed bed - before taking the keys.
House Bill 2754, the Long-Term Care Nursing Facility Transfer of Operations Act, was introduced on August 28, 2026 by Frankel and 15 co-sponsors and sent to the House Health Committee three days later. It would require an "entering operator" to secure a change of operator license from the Department of Health before running a facility.
The bond is the part insurers will care about. The bill would set it at no less than $10,000 for every licensed bed, and either the new operator or the property owner could supply it. It would have to stay in place for five years after the handover. Miss a renewal, and the department would revoke the license 30 days after notice.
The state could tap the bond to recover its costs if the home closes, files for bankruptcy, goes into receivership, loses its license, or lands on the federal Special Focus Facility list inside that five-year window. The bond would be waived only when the buyer already owns at least 50% of the facility and its assets.
Buyers would also have to attest that they carry general and professional liability insurance under Pennsylvania's Mcare Act, and that they have quality assurance and risk management plans ready. They would need at least five years running a nursing facility.
Applicants would name every owner holding 5% or more and disclose any closures, bankruptcies, receiverships, or license actions tied to their facilities over the past five years. The department would have to deny a license where an applicant, or a big owner of it, had held 50% ownership or operational control of a facility that was forced shut or faced bankruptcy or receivership not dismissed within 60 days.
After issuing the license, the department would run a federal provider screening for operators joining Medicare or Medicaid.
Operators who skip the process or file "fraudulent information" would face a civil penalty of $2,000 for each day after the change takes effect. The act would take effect 60 days after enactment.
