Bill > H7172

This bill establishes the Health Care and Social Services Transaction Review and Significant Equity Investor Disclosure Act, which requires advance notice and enhanced disclosure for significant changes in ownership or control of entities providing health care and social services in the state. Specifically, it mandates that parties involved in a "material change," defined as a merger, acquisition, or other transaction that alters ownership or control of a "covered care entity" (which includes licensed healthcare facilities, behavioral health organizations, and certain residential facilities), must notify the Department of Health and the Attorney General at least 60 days before the change takes effect. This notice must detail the parties involved, the transaction structure, and the post-transaction ownership and governance. For transactions involving a "significant equity investor," defined as a private equity company or any investor holding 10% or more of an entity's equity or governance rights, the state may require additional information, such as financial statements and management agreements, and can mandate up to five years of post-transaction reporting to monitor impacts on service availability, cost, and workforce stability. The bill also includes provisions for confidentiality of sensitive information, enforcement with civil penalties up to $10,000 per day for non-compliance, and coordination with existing laws, such as the hospital conversions act, to avoid duplicative filings.

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