CT HB05316

Real estate investment trusts (REITs) are prohibited from acquiring any operational control over hospitals or health systems, or increasing any existing operational control they have over such entities, effective October 1, 2026

Hospitals and health systems are prohibited from entering into sale-leaseback transactions involving real property that constitutes the main campus of a hospital, effective October 1, 2026

"Operational control" is defined as influencing or directing hospital/health system actions or policies, or having the ability to choose, appoint, or terminate board members, managers, senior employees, or consultants involved in operational oversight

"Sale-leaseback transaction" is defined as an agreement where a hospital or health system sells and then leases back hospital-owned real property that constitutes the hospital's main campus

"Health system" encompasses parent corporations of hospitals and any affiliated entities connected through ownership, governance, or membership