Bill > SB01507

This bill aims to prevent private equity companies and real estate investment trusts from acquiring or controlling hospitals and health systems, effective October 1, 2025. The legislation defines key terms such as "health system," "operational control," and "private equity company," and explicitly prohibits these entities from purchasing ownership stakes in or exercising financial or operational control over hospitals. Additionally, the bill restricts healthcare facilities and management services organizations from interfering with healthcare providers' professional judgment and clinical decisions. Specifically, the bill prevents entities from controlling factors like patient interaction time, discharge decisions, diagnostic procedures, and medical record entries. The legislation also invalidates any nondisclosure agreements or contracts that would attempt to circumvent these protections, with potential legal consequences including court-awarded attorney's fees. Furthermore, the bill requires the Commissioner of Health Strategy to evaluate whether the Attorney General should have the power to appoint a receiver to manage hospitals experiencing financial distress, with a report due by October 1, 2026. The overall intent is to protect medical professionals' autonomy and prevent external financial interests from compromising patient care.