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CT SB00196
Bill
Status
2/11/2026
Primary Sponsor
Public Health Committee
Click for details
AI Summary
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Hospitals are prohibited from entering sale-leaseback transactions with real estate investment trusts for their main campus properties starting October 1, 2026, unless experiencing financial distress
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Financial distress exception allows sale-leasebacks when a hospital has filed for bankruptcy, missed two consecutive debt service payments, or received a negative going concern audit opinion, with 10-day advance notice to the Commissioner of Public Health and Attorney General required
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Hospitals must submit annual attestations starting October 1, 2026 confirming no private equity entity has a controlling interest and that the license-holding entity maintains full governance over all clinical, operational, managerial, financial, and human resources matters
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Private equity entities are prohibited from influencing hospital policies that would interfere with clinician decisions on patient time, emergency department triage, discharge timing, clinical status determinations, diagnoses, or diagnostic testing
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Hospitals and their affiliates retain the ability to invest directly or indirectly in joint ventures despite the new restrictions
Legislative Description
An Act Concerning Hospital Sale-leaseback Agreements And Attestations Concerning Lack Of Private Equity Control Of The Hospital And Control Of Or Interference With The Professional Judgment And Clinical Decisions Of Certain Health Care Providers.
Last Action
Referred to Office of Legislative Research and Office of Fiscal Analysis 03/16/26 5:00 PM
3/11/2026