Whoever authored this new legislation (Chapter 2021-135, Laws of Florida) deserves a pat on the back for an idea whose time has come. When an applicant files for a change of ownership (“CHOW”) or change of location for one of the permits authorized by the Florida Department of Business Professional Regulation, Division of Drugs, Devices, and Cosmetics (affectionately, “DDC”) under Part 1 of Chapter 499, FS, they can now also request a temporary permit for 90 days.
Having the option to request a temporary permit is especially important when pursuing a CHOW. In a typical healthcare CHOW process, the parties are hammering out the terms of the agreement while the healthcare regulatory team coordinates with state agency personnel to arrange issuance of the healthcare entity permit exactly on the effective date of the transaction. The problem is that the parties’ preferred closing schedule may not coincide with statutory time frames and the schedules of the state agency permit processors. So, prior to this new legislation, if, for example, the parties want to close in 10 days, but the state can’t process the application for 30 days, then the parties would be left with no permit for 20 days after the scheduled closing. The new owner loses business and the provider’s patients struggle to find a provider to serve them while the buyer awaits the new permit. Also, if there are drugs on the premises, what happens to them when the permit is no longer in effect? Continue Reading