Health & Saf. Code, § 1728.75

(a) A license issued by the department pursuant to this chapter shall not be transferable.

(b) The department shall not approve a change of ownership of a licensed home health agency within five years of the date a license was initially issued to the licensee. Only the person, political subdivision of the state, or other governmental agency issued a license for the purposes of operating a home health agency may use that license during that initial five-year period.

(c) Notwithstanding subdivision (b), the department may make an exception for extenuating circumstances and approve a change of ownership within the initial five-year period if the home health agency demonstrates and provides evidence to the department of either of the following:

(1) The need to ensure continuity of care for existing patients of the home health agency.

(2) The home health agency is suffering financial hardship and if it were to close, there would be an unmet need for home health services in the home health agency’s geographic service area.