Tennessee Code Title 71. Welfare § 71-5-132

(a) No change of ownership or controlling interest of an existing medicaid provider, including, but not limited to, hospitals, nursing home facilities, home health agencies, and pharmacies, can occur until provision is made for moneys owed to medicaid. The purchaser shall notify medicaid of the purchase at the time of ownership change and is financially liable for the outstanding liabilities to medicaid for one (1) year from the date of purchase or for one (1) year following medicaid's receipt of the provider's medicare final notice of program reimbursement, whichever is later. The purchaser shall be entitled to utilize any means available to it by law to secure and recoup these funds from the selling entity. In addition, purchasers of nursing facilities are responsible for obtaining an accurate accounting and transfer of funds held in trust for medicaid residents at the time of the change of ownership or controlling interest.

(b) If the division of medicaid has not reimbursed a business for medicaid services provided under the medicaid program at the time the business is sold, when such an amount is determined the division of medicaid shall be required to reimburse the person owning the business; provided, that such sale included the sale of such assets.