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Committee passes bill to increase transparency and restrict harmful practices after for‑profit takeovers of nursing homes

2782990 · March 25, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Senate File 2972, designed to increase transparency and limit asset extraction after nonprofit nursing homes and assisted‑living facilities are sold to for‑profit owners, cleared the Senate Human Services Committee after a lengthy hearing and was referred to Commerce.

ST. PAUL, Minn. — After hours of testimony and debate, the Senate Human Services Committee on Wednesday approved legislation intended to increase transparency and restrict certain practices when nonprofits sell nursing homes or assisted‑living facilities to for‑profit buyers.

Senator John Dibble, the bill’s sponsor, said the bill responds to constituent complaints and national research showing poorer outcomes after private takeovers. "This is from the National Bureau of Economic Research...patient mortality rates during a nursing home stay and subsequent 90 days is 10 higher at facilities owned by private equity firms," Dibble told the committee, summarizing research included with the bill's packet.

Paricha Rudina of the Office of Ombudsman for Long‑Term Care testified in support, describing resident complaints that rose sharply after ownership changes: "Residents have reported to us an overall reduction in quality of care after a takeover of their facility by a for‑profit entity... complaints to our office frequently increase after a…

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