Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Healthcare Finance topic
No spam. Unsubscribe anytime.
Committee advances bill to curb sale–leaseback financing by health systems, citing past bankruptcies
Summary
HB5316, which would limit REIT acquisitions and sale-leaseback transactions by health systems, moved to the consent calendar after proponents argued such transactions have led to bankruptcies and degraded local health-care operations.
The Banking Committee advanced HB5316, a bill intended to prohibit real estate investment trusts from acquiring or increasing operational control and to restrict sale-leaseback financing by health systems.
Representative Doucette and several members described past bankruptcies and operational failures tied to sale-leaseback transactions in hospitals (citing Prospect Medical and specific hospital examples) and urged the committee to move the measure forward to protect patients and sustain local care. Committee members said the bill aligns with similar measures the Public Health Committee has considered and reflects cross-committee consensus.
The chair thanked members for their work and asked the clerk to place HB5316 on the consent calendar; members moved to add it without objection. The chair and cochair framed the item as an overdue protection intended to reduce the monetary incentives that can come at the expense of patient care.
Next steps: HB5316 will appear on the consent calendar for floor consideration; proponents said they would continue to coordinate language with other committees and stakeholders.
