SF2972 (Legislative Session 94 (2025-2026))
For-profit entity acquisitions of nursing homes and assisted living facilities regulation
Related bill: HF2771
AI Generated Summary
Purpose of the Bill
The bill aims to regulate the acquisition of nursing homes and assisted living facilities by private equity companies in Minnesota. It seeks to ensure that such acquisitions do not adversely impact the quality, affordability, and availability of care for residents. The bill also requires a study to understand the effect of these acquisitions over time.
Main Provisions
- Definition of Controlling Person/Entity: The bill outlines who is considered a "controlling person" in a business entity managing nursing homes or assisted living facilities, including owners, managers, and those with significant financial stakes.
- Notification and Approval: Facilities must notify the Attorney General and relevant state departments at least 120 days before completing a transfer of ownership to a private equity company. The acquiring company must provide detailed information about its structure, financial health, and past legal compliance.
- Attorney General Approval: Acquisitions require approval from the Attorney General, who will assess potential impacts on residents and facility operations. This assessment considers factors like service quality, resident costs, staffing, and facility maintenance.
- Prohibited Practices: Private equity companies acquiring these facilities are banned from interfering with professional healthcare judgments and cannot implement policies that negatively impact care quality or escalate costs unreasonably.
- Additional Requirements: Companies must spend at least 75% of public funding on direct resident care and provide severance pay to laid-off employees if reductions in staffing occur.
- Reporting Obligations: Acquiring companies must submit regular reports detailing their financial health, impacts on resident care, staff levels, and any political or business transactions related to the facility.
Significant Changes to Existing Law
- Explicit Ownership Control: The bill introduces strict oversight mechanisms and clarifies the roles and responsibilities of owners and operators of healthcare facilities to prevent adverse impacts from financial reorganization.
- New Reporting and Compliance Requirements: Establishes new compliance and reporting obligations for private equity firms to ensure transparency and accountability in their operations affecting healthcare facilities.
Relevant Terms
private equity, nursing home, assisted living facility, controlling person, attorney general, resident care, direct care spending, severance pay, reporting obligations, acquisition approval.
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 23, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 23, 2025 | Senate | Floor | Action | Referred to | Human Services |
| March 31, 2025 | Senate | Floor | Action | Comm report: To pass as amended and re-refer to | Commerce and Consumer Protection |
| March 31, 2025 | Senate | Floor | Action | Author added | |
| April 02, 2025 | Senate | Floor | Action | Withdrawn and re-referred to | Human Services |
| April 02, 2025 | Senate | Floor | Action | Withdrawn and re-referred to | Human Services |
Citations
[
{
"analysis": {
"added": [
"Clarifies entities included and excluded as 'controlling persons'."
],
"removed": [
"Certain conditions under which banks and similar financial entities were excluded."
],
"summary": "Amendment to existing statutory definition of 'controlling person' for nursing homes.",
"modified": [
"Conditions for indirect ownership interpretations."
]
},
"citation": "144A.01"
},
{
"analysis": {
"added": [
"Expands the definition to include various ownership interests."
],
"removed": [
"None specified in this context."
],
"summary": "Amendment to existing statutory definition of 'controlling individual' for assisted living facilities.",
"modified": [
"Adjusts criteria for financial interest exclusions."
]
},
"citation": "144G.08"
},
{
"analysis": {
"added": [
"Reference to tax-exempt status protections."
],
"removed": [
"Conditions removing exclusions related to tax-exempt status were clarified."
],
"summary": "Referenced in context of exclusions from definition of controlling person.",
"modified": [
"Application of exclusions to natural persons involved with tax-exempt organizations."
]
},
"citation": "290.05"
},
{
"analysis": {
"added": [
"Clarifies securities exemptions relevant to controlling interests in elder care facilities."
],
"removed": [
"Conditions were made more explicit for relevant securities."
],
"summary": "Referenced in context of securities exemptions for controlling interests.",
"modified": [
"None specified in this context."
]
},
"citation": "80A.45"
},
{
"analysis": {
"added": [
"Clarifies transactions exemptions relevant to controlling interests in elder care facilities."
],
"removed": [
"Conditions were made more explicit for relevant transactions."
],
"summary": "Referenced in context of transaction exemptions for controlling interests.",
"modified": [
"None specified in this context."
]
},
"citation": "80A.46"
},
{
"analysis": {
"added": [
"Used to ensure standards of operations by private equity companies."
],
"removed": [
"None specified in this context."
],
"summary": "Cited for regulatory alignment for financial and operational norms for nursing homes.",
"modified": [
"None specified in this context."
]
},
"citation": "256R"
},
{
"analysis": {
"added": [
"Specifies legal protocols for appointing receivers in ownership disputes."
],
"removed": [
"None specified in this context."
],
"summary": "Referenced for receivership provisions for nursing homes in cases of ownership control issues.",
"modified": [
"Expanded to include assisted living facilities under certain approvals."
]
},
"citation": "144A.15"
}
]