Purpose of the Bill

The bill aims to regulate the involvement of private equity companies in acquiring nursing homes and assisted living facilities in Minnesota. It seeks to ensure that these acquisitions do not negatively impact the quality of care, increase resident costs unfairly, or lead to decreased facilities' maintenance and staffing. Additionally, it mandates a study to investigate the effects of such acquisitions on the state's long-term care environment.

Main Provisions

• Regulation of Acquisitions: Private equity companies seeking to acquire control of nursing homes or assisted living facilities must provide a detailed notice and information to the Attorney General, who must approve the acquisition.

• Approval Criteria: The Attorney General, after consulting relevant state departments, can approve or deny acquisitions based on their impact on resident care, costs, staffing, and infrastructure maintenance.

• Prohibited Practices: Post-acquisition, private equity companies are prohibited from interfering with medical professionals' judgments, providing unequal treatment based on payment sources, or undermining facility operations in ways that diminish care quality or access.

• Spending Requirements: Private equity companies must allocate a significant portion of received funds from public sources directly to resident care.

• Reporting Requirements: Acquiring companies must submit periodic reports detailing financial status, impacts on care quality, staff changes, political contributions, and other relevant operations metrics.

Significant Changes to Existing Law

• Redefinition of "Controlling Interest": The bill amends existing statutes to broaden the definition of controlling persons and individuals in the context of nursing homes and assisted living facilities, capturing a wider range of ownership structures and influences.

• Requirements and Oversight: Establishes new statutory provisions (chapter 145D) dictating ownership transfer procedures, requiring notice periods and detail-rich affidavits, and introducing mandatory Attorney General approval for acquisitions by private equity firms.

• Enhanced Oversight: Includes the requirement for a comprehensive investigation by the Attorney General to assess the impact of these business arrangements statewide and proposes measures to protect public interest in long-term care settings.

Relevant Terms

private equity, nursing homes, assisted living facilities, acquisition, controlling interest, attorney general approval, direct care, resident care quality, facility maintenance, reporting requirements, equity ownership, notice period, health care professional judgment, public programs, severance pay, real estate investment trust, tenant protection.