Hospitals report private equity control and face a campus sale-leaseback ban

Hospitals may not sell and lease back the real property that makes up their main campus. A hospital's main campus is the licensed premises where most of its inpatient beds are located. The ban applies to transactions entered into on or after July 1, 2027.

Each hospital must send the public health commissioner yearly statements about private equity control and influence over clinical decisions. The duty applies to each hospital and concerns private equity entities, which the law defines to include entities that collect investments and buy a direct or indirect ownership share of a hospital. The statements must attest that no private equity entity controls the hospital or has ultimate governance control over any main-campus asset or activity, and that no such entity may direct policies that interfere with clinicians' judgment or clinical decisions. Hospitals may still invest in joint ventures, make agreements with physicians or physician groups to provide hospital services, and coordinate with a parent health care system. The commissioner may impose a penalty of up to $2,000 per violation for a missing statement. A hospital must request a hearing in writing within 10 business days of receiving a penalty order to contest it. The first statement is due by February 15, 2027; later statements are due annually.