Committee reviews redraft of H.583 that would bar private‑equity and REIT ownership of certain health facilities

A legislative committee on Feb. 4 reviewed a strike‑all draft of H.583 that would refocus the bill from limiting particular financial transactions to restricting ownership structures of health care facilities and strengthening protections for clinical decision‑making.

Jen Garvey of the Office of Legislative Council presented the revised draft, saying it replaces transaction‑based limits with prohibitions on certain ownership models. "Beginning on 01/01/2027, the following healthcare facility ownership structures are prohibited," Garvey told the committee, listing ownership or control of core operations by a private equity company or a real estate investment trust, and certain for‑profit ownership except professional corporations or professional limited liability companies formed under Title 11 provisions.

The draft would also bar state licensing agencies from issuing a new or renewal license after 01/01/2027 to facilities with those ownership structures; Garvey said facilities operating on 07/01/2026 would have until 07/01/2029 to come into compliance, and that penalties and a private…