Senate adopts amended bill requiring data and attestations on nursing‑home ownership

The Connecticut Senate on Monday passed a substitute for Senate Bill 125 as amended, a measure that moves away from an earlier proposal to restrict private‑equity ownership of nursing homes and toward a system of mandated data reporting and agency review.

The amendment the chamber adopted replaces a prohibition approach with a set of disclosure, attestation and reporting requirements. The sponsor summarized the change as a shift “from restricting private equity” to collecting data so state agencies can “look for trends, and protect the state, and ultimately protect the patients in our nursing homes.” The amendment requires nursing homes to provide ownership and recent financial statements to DSS by Feb. 15, 2027, and it directs DSS and DPH to analyze and report by Feb. 2028 on quality differences between facilities with investment equity and those without.

Under the amended language, if a security instrument is identified that could guarantee roughly 90 days of operating costs, the commissioner of DSS will inform licensed nursing homes by Jan. 1, 2028; if one is found, certain facilities with investment equity must demonstrate a security bond equal to 90 days of operating expenses and provide documentation to DPH. The bill also establishes a waiver process for facilities that cannot meet the attestation deadline: a facility may notify DSS up to six months before the deadline to seek accommodation.

Supporters framed the change as the product of multi‑stakeholder working groups and agency input. One senator said the bill reflects “a refinement and input from so many experts,” stressing that the goal is to preserve well‑run operators while identifying and responding to risky ownership patterns.

Opponents pressed for clearer statutory standards and expressed concern about concentrating discretion in the DSS commissioner. A senator warned that statutory language that leaves the agency to determine compliance and to impose civil penalties could be used inconsistently unless the legislature writes clearer thresholds into law; the bill as amended preserves an existing penalty authority and a process for fair hearings under current statute.

The Senate voted to adopt the amendment and then passed the substitute for SB 125 as amended by roll call. The measure now proceeds to the next steps required for enactment. Supporters said the bill will give regulators data and tools to identify problematic ownership arrangements while preserving good actors; critics urged adding clearer, objective standards to limit administrative discretion.