Notice of Material Change Transaction

  • Health care entities must provide the Office of Health Care Affordability (OHCA) with 90-day advance notice of material change transactions. See Health and Safety Code 127507 and Chapter 11.5 of Division 7 of Title 22 of the California Code of Regulation. For more information about the transaction review program, visit the Office of Health Care Affordability Website.

  • Before submitting a Material Change Transaction Notice, both of the following must be true:

      1. You are a health care entity. (expand/collapse details)
      “Health care entity” shall:
      (1) Have the meaning set forth in section 127500.2(k) of the Code;
      (2) Include pharmacy benefit managers as set forth in sections 127501(c)(12) and 127507(a) of the Code; and
      (3) Include any parents, affiliates, or subsidiaries that act in California on behalf of a payer and:
              (A) control, govern, or are financially responsible for the health care entity or are subject to the control, governance, or financial control of the health care entity, or
              (B) in the case of a subsidiary, are a subsidiary acting on behalf of another subsidiary; but
      (4) Exclude physician organizations with less than 25 physicians, unless determined to be a high-cost outlier, as described in 127500.2(p)(6) of the Code. Any health care entity entering into a transaction with a physician organization of less than 25 physicians remains subject to the notice filing requirements of section 97435.

      2. You are a party to a transaction. (expand/collapse details)
      “Transaction” includes:
      Mergers, acquisitions, affiliations, and agreements impacting the provision of health care services in California that involve a transfer (sale, lease, exchange, option, encumbrance, conveyance, or disposition) of assets or a transfer of control, responsibility, or governance of the assets or operations, in whole or in part, of any health care entity to one or more entities.

  • You must sign into the portal to submit a Material Change Transaction Notice to OHCA. If you don't have an existing account, you can register for a new account by clicking onSign In at the top right corner of this page.

  • Once signed in, you can submit a new Material Change Transaction Notice (MCN) and access your existing MCNs.

  • If you have questions regarding the submission process, you may contact OHCA