Committee advances bill to bar private‑equity control over clinical decisions; reporting to Green Mountain Care Board required

The House Appropriations Committee voted to advance H.583 on March 17 after hearing from legislative counsel and the bill sponsor about limits on private‑equity influence over clinical decision making.

Jen Carvey, legislative counsel, summarized the measure and said it “adds a new chapter in Title 18 on clinical decision making.” The central prohibition in the draft prevents private equity groups, hedge funds or entities controlled by them from exercising authority over clinical judgments—such as ordering tests, directing length of patient visits, or making decisions that require licensed health‑care professionals’ clinical judgment.

The bill also requires health care facilities and management service organizations to inform the Green Mountain Care Board by July 1 whether they have private‑equity or hedge‑fund ownership or investment interest. If they do, the facility must provide specified information in a form and manner required by the board and must notify the board of new or modified ownership interests after July 1, 2026. The bill makes most of that information public (with limited exceptions for provider tax IDs and individual contact details) and directs the board to post aggregated information beginning Feb. 1, 2027. The Attorney General would be authorized to seek penalties and injunctive relief for false or omitted reports.

Representative Melissa Black, co‑lead sponsor and chair of House Healthcare, said the bill was developed “in deep consultation with Green Mountain Care Board” and with provider groups and the Attorney General’s office, and emphasized the intent not to block investment: “We do not want to hinder investment in our health care,” she said, while stressing the need to protect providers’ clinical independence.

Committee members asked whether the Green Mountain Care Board has capacity to handle filings and whether the bill might unintentionally block constructive investor models (for example, hospital partnerships operating in rural areas). Carvey and the sponsor said nursing homes were exempted from the reporting requirement because an existing regulatory ownership reporting process already covers those facilities. The bill also includes a carve‑out for entities providing services exclusively via telehealth.

Carvey and members described the ban as focused on the corporate practice of medicine—protecting clinical decision making—while allowing nonclinical efficiencies (administrative technology, billing, revenue management) to continue. She said the reporting piece helps identify potential violations and provides recourse for clinicians if impermissible control occurs.

The committee conducted a roll‑call vote after a motion to pass H.583 as amended. The clerk read recorded votes in the hearing transcript (names and votes as read in the record); the tally recorded in the transcript was 10 Yes, 1 No, and the committee passed the bill out of Appropriations. The transcript lists the roll‑call as read in the record; those names are recorded as read and may include transcription artifacts.

The committee noted next steps for placing the bill on notice for subsequent readings and discussed who would serve as the reporter for the record.