HF2771 (Legislative Session 94 (2025-2026))
Private equity company acquisitions of nursing homes and assisted living facilities regulated, study required, and money appropriated.
Related bill: SF2972
AI Generated Summary
Purpose of the Bill
The bill aims to regulate how private equity companies can acquire nursing homes and assisted living facilities in Minnesota. It seeks to ensure that these acquisitions do not negatively impact the residents, quality of care, or financial stability of such facilities.
Main Provisions
Notice and Approval: Nursing homes and assisted living facilities must provide a 120-day advance notice to the Attorney General, Commissioner of Health, and Commissioner of Human Services before transferring ownership or control to a private equity company. The Attorney General must approve any such acquisition, ensuring it won't negatively impact residents.
Information Requirements: Private equity companies must submit detailed information about their ownership, corporate structure, financial status, and history of legal actions or complaints.
Prohibition and Conditions: Private equity companies are prohibited from undermining the professional judgment of healthcare workers, engaging in unequal treatment based on payment methods, or degrading the quality or access to care. After acquiring a facility, companies must invest in maintaining and improving facilities without causing undue increases in costs to residents.
Financial Commitment: Companies must spend at least 75% of public funding on direct care and offer severance pay to laid-off employees unless reductions are due to a decline in resident numbers.
Regular Reporting: Acquiring companies are required to submit annual reports detailing financial status, quality of care, staffing changes, and political spending related to healthcare.
Attorney General's Role: The Attorney General has the authority to investigate acquisitions and ensure ongoing compliance, with the power to impose additional requirements as necessary. The Attorney General will also study the impact of private equity ownership over time and report findings by February 2026.
Significant Changes to Existing Law
The bill creates new sections in Minnesota law regulating the acquisition of nursing homes and assisted living facilities, introducing the requirement for state approval and extensive documentation from private equity companies.
It expands the definition of "controlling person" and "controlling individual" to ensure thorough oversight of who is gaining control over these facilities.
The bill ensures that private equity companies in control of such facilities are financially viable and committed to maintaining quality care standards before and after the acquisition.
Relevant Terms
- Private equity
- Nursing home
- Assisted living facility
- Controlling person
- Financial regulation
- Quality of care
- Consumer protection
- Attorney General approval
- Health care facilities
- Direct care expenditure
Bill text versions
- Introduction PDF file
Upcoming committee meetings
- Health Finance and Policy on: April 07, 2025 13:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2025 | House | Floor | Action | Introduction and first reading, referred to | Health Finance and Policy |
| March 23, 2025 | House | Floor | Action | Introduction and first reading, referred to | Health Finance and Policy |
| March 25, 2025 | House | Floor | Action | Author added |
Citations
[
{
"analysis": {
"added": [
"Includes individuals with ownership interest and specified officers."
],
"removed": [
"Exclusions for banks and governmental entities unless they operate nursing homes directly."
],
"summary": "This bill amends the definition of a 'controlling person' in the context of nursing home regulations under section 144A.01.",
"modified": [
"Clarifies which types of interests and entities are included."
]
},
"citation": "144A.01",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [
"Clarification on ownership interest for entities or natural persons."
],
"removed": [
"Certain financial institutions, under specific circumstances, from being controlling individuals."
],
"summary": "This legislation updates the definition of 'controlling individual' for assisted living facilities under section 144G.08.",
"modified": [
"Definitions regarding ownership of land and facility structures."
]
},
"citation": "144G.08",
"subdivision": "subdivision 15"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Part of the law referenced in exemptions related to ownership exclusions.",
"modified": []
},
"citation": "80A.45",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced regarding transaction exemptions.",
"modified": []
},
"citation": "80A.46",
"subdivision": ""
},
{
"analysis": {
"added": [
"A specific reference to the existing definition used for legislative consistency."
],
"removed": [],
"summary": "Defines 'Assisted living facility' as referenced multiple times throughout the bill.",
"modified": []
},
"citation": "144G.08",
"subdivision": "subdivision 7"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines 'Assisted living facility with dementia care' and its use in legislative context.",
"modified": []
},
"citation": "144G.08",
"subdivision": "subdivision 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines venture capital funds as used in federal financial regulation.",
"modified": []
},
"citation": "Code of Federal Regulations title 17 section 275.203l1",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines a real estate investment trust for federal tax purposes and its reference.",
"modified": []
},
"citation": "United States Code title 26 section 856",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in the context of operational requirements for nursing homes.",
"modified": []
},
"citation": "144A.1888",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced for nursing home operational funding guidelines.",
"modified": []
},
"citation": "256R",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced for nursing home operational requirements.",
"modified": []
},
"citation": "Minnesota Rules chapter 4658",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced for assisted living facility operational requirements.",
"modified": []
},
"citation": "Minnesota Rules chapter 4659",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provision includes references related to licensure requirements for nursing homes.",
"modified": []
},
"citation": "144A.03",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Provision relevant to licensing requirements for assisted living facilities.",
"modified": []
},
"citation": "144G.12",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in context of appointing a receiver for nursing homes.",
"modified": []
},
"citation": "144A.15",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in the context of financial operations and receivership of nursing homes.",
"modified": []
},
"citation": "256R.52",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Referenced in relation to the laws governing public receivership.",
"modified": []
},
"citation": "chapter 576",
"subdivision": ""
}
]