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Senate passes bill to restrict private‑equity control and sale‑leasebacks at hospital main campuses
Summary
The Connecticut Senate on April 22 passed substitute for Senate Bill 196, adopting an amendment that bans certain sale‑leaseback deals on hospital main campuses and requires attestations that private‑equity entities lack controlling governance over clinical decisions; the vote was 27–9.
The Connecticut Senate passed an amended bill restricting private‑equity influence at acute care hospitals, voting 27–9 after several hours of debate.
Senator Anwar, the bill’s sponsor, said the legislation would “draw a line between care and commerce,” and described sale‑leaseback transactions and outside investor control as mechanisms that, in his view, had previously undermined patient care and operations. He said the amendment bars sale‑leaseback deals affecting a hospital’s main campus and requires hospitals to tell the Department of Public Health whether any private‑equity entity has a controlling interest or governance authority that could affect clinical, operational, financial or human‑resources decisions.
The measure also requires attestations that clinical decisions remain in the hands of hospital clinical leadership and includes civil penalties and a short administrative review timeline for disputes.
Opponents, including Senator Sampson, said the bill is written too broadly and risks discriminating against many kinds of investors, including entities that raise outside capital for financing. “This bill is targeting a specific type of ownership,” Sampson said on the floor, arguing it could deter investment and leave government as the default option for hospital ownership. Senator Gordon and others said the state should instead tighten oversight and enforcement of standards applicable to any buyer rather than bar classes of investors by definition.
Supporters pointed to Connecticut’s recent experience with private‑equity ownership of hospitals and described the bill as a necessary step to protect services in vulnerable communities. Senator Summers said the amendment is a “middle ground” that aims to preserve hospital governance for patient care while allowing capital investment under clear limits.
After debate the Senate adopted the amendment and passed substitute for Senate Bill 196; the clerk announced the roll call tally at 36 voting, 27 in favor, 9 opposed.
The Senate passed the measure; the next procedural step is transmission to the other chamber per legislative process.
