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Transparency bill on private‑equity ownership in nursing homes gets technical pushback

Connecticut General Assembly - Aging Committee · February 20, 2026

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Summary

Advocates argued for annual ownership disclosures and limits on short‑term takeovers; provider groups urged technical fixes, alignment with CMS definitions and an evaluative review by state agencies before adoption.

Supporters of Senate Bill 125 said the measure is intended to increase transparency around layered ownership of nursing homes and restrain short‑term investment practices that can destabilize facilities.

Witnesses described problems when ownership becomes opaque: operating, real estate and management entities are separated and revenue moves through related parties, which complicates accountability and public oversight. One witness cited an estimate that "about 5.4% of nursing homes in the state of Connecticut have private equity ownership," while acknowledging that layered ownership may undercount investment influence.

The bill would require more detailed, regular reporting of ownership entities and would require approval from the Department of Public Health before a nursing home can be sold within five years of acquisition, a sponsor said. Michael Warner and other witnesses recommended tracking ownership and short‑term 'show short' sales to realign incentives.

Provider representatives supported the transparency goal but urged careful statutory drafting. Matt Barrett, president and CEO of the Connecticut Association of Healthcare Facilities, recommended adoption of more technical LCO language from last session to align definitions with CMS and include an evaluation provision for the Departments of Public Health and Social Services to study disclosures and correlate ownership with care outcomes.

Committee members asked for written substitute language and detailed comments from providers and regulators; no committee vote occurred during the hearing.