The following states have proposed, but not passed, additional state healthcare transaction notification laws.[1]
- California: Proposed law (AB 3129) would required private equity and hedge fund groups to notify the Attorney General for any change of control or acquisition of a health care facility or providing group closing on or after January 1, 2025 at the same time any other state or federal agency is notified, or otherwise no later than 90 days prior to closing of eligible transactions, and requires the Attorney General’s written consent to proceed with the transaction.
- Connecticut: Proposed law (HB 5319) would mandate the Office of Health Strategy’s executive director with developing a plan by January 1, 2025 pertaining to private equity firms’ ownership of Connecticut health care facilities, including whether any restrictions should be implemented.
- Massachusetts: Proposed law (H.4653) would subject any private equity investment in any provider or provider organization to a regime requiring notice to the Health Policy Commission (HPC) and other agencies no later than 60 days prior to the proposed date. If HPC determines a cost and market impact review is necessary, it has 185 days from the notice date to issue a final report. Regulated transactions may close 30 days after issuance of a final report.
- Minnesota: Proposed law (HF 4206) would place a moratorium on private equity companies’ and real estate investment trusts’ acquiring or increasing any direct or indirect ownership interest in, or control over, a provider of health or medical services in Minnesota, effective August 1, 2024, if passed. However, this bill has not moved much since its introduction and did not make it out of either the House or Senate committees.
- Pennsylvania: Proposed law (SB 548) would require provider organizations and for-profit entities which own or operate hospitals, nursing homes, or hospice agencies to notify the Attorney General at least 90 days prior to entering into material change transactions or other agreements. The Attorney General has 90 days to determine whether a proposed transaction is against the public interest and can extend the review period by an additional 30 days.
- Washington: Proposed law (SB 5241) would expand the current review process and lengthen the notice period, as well as broadening the scope of entities which may be subject to the notice requirements. In addition, the legislation provides additional details regarding a preliminary and comprehensive review process, and expedited review process, and greater process and clarity regarding confidentiality.
[1] List current as of 6/7/2024. Note that this page may not include all regulatory developments.
[View source.]
