SF2972 (Legislative Session 94 (2025-2026))
For-profit entity acquisitions of nursing homes and assisted living facilities regulation
Related bill: HF2771
AI Generated Summary
Purpose of the Bill
The bill aims to regulate the acquisition of nursing homes and assisted living facilities by for-profit entities. The goal is to ensure that these facilities maintain a high standard of care and management when transitioning from nonprofit to for-profit control.
Main Provisions
- Control and Ownership Definitions: The bill clarifies who is considered a "controlling person" in the context of managing these types of facilities. This includes owners, officers, and individuals with significant financial or managerial interests.
- Notice Requirements: Nonprofit facilities intending to transfer ownership or control to a for-profit entity must provide notice at least 120 days before the transaction to the attorney general and relevant state departments.
- Information Disclosure: For-profit entities seeking to acquire these facilities must disclose detailed corporate information, financial backgrounds, and any legal history to state officials.
- Prohibited Practices: The bill outlines practices that are banned for newly acquired for-profit facilities. These include interfering with medical professionals’ judgments, engaging in self-dealing, and reducing quality or access to care.
- Financial and Operational Commitments: For-profit entities must prove they can manage and advance the facilities, maintain or improve Medicare/Medicaid ratings, and that they intend to invest in facility improvements.
- Consumer Protection: An increase in resident housing costs must be justified, and at least 75% of funds from public programs should be spent on direct care.
Significant Changes to Existing Law
- Establishes a legal framework specifically addressing the acquisition of nonprofit nursing homes and assisted living facilities by for-profit entities, which includes stringent disclosure and operational requirements.
- Grants enforcement authority to the attorney general to prevent unfair practices and ensure compliance.
- Introduces financial accountability for new owners, stipulating conditions related to service costs and care quality.
Relevant Terms
- Nursing Homes
- Assisted Living Facilities
- For-Profit Entities
- Nonprofit Facilities
- Controlling Person
- Notice Requirements
- Prohibited Practices
- Attorney General Enforcement
- Medicare and Medicaid Ratings
- Consumer Protection
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 23, 2025 | Senate | Floor | Action | Referred to | Human Services |
| March 31, 2025 | Senate | Floor | Action | Comm report: To pass as amended and re-refer to | Commerce and Consumer Protection |
| March 31, 2025 | Senate | Floor | Action | Author added | |
| April 02, 2025 | Senate | Floor | Action | Withdrawn and re-referred to | Human Services |
Citations
[
{
"analysis": {
"added": [
"Clarification on ownership interests and associated roles."
],
"removed": [
""
],
"summary": "Modification of the definition of 'controlling person' in the context of nursing homes.",
"modified": [
"Expanded definition to include more entities and individuals."
]
},
"citation": "144A.01",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [
"Specification of roles and ownership interests."
],
"removed": [
""
],
"summary": "Changes to the definition of 'controlling individual' for assisted living facilities.",
"modified": [
"More detailed inclusions and exclusions for controlling individuals."
]
},
"citation": "144G.08",
"subdivision": "subdivision 15"
},
{
"analysis": {
"added": [
""
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"removed": [
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"summary": "Referencing exemption criteria for tax purposes.",
"modified": [
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},
"citation": "290.05",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
""
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"removed": [
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"summary": "Defines securities exemptions for entities involved with nursing homes.",
"modified": [
""
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},
"citation": "80A.45",
"subdivision": ""
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"analysis": {
"added": [
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"removed": [
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"summary": "References exemptions related to financial transactions.",
"modified": [
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"citation": "80A.46",
"subdivision": ""
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{
"analysis": {
"added": [
""
],
"removed": [
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],
"summary": "Part of requirements for affidavit and evidence submission for nursing home acquisition.",
"modified": [
""
]
},
"citation": "144A.03",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
""
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"removed": [
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"summary": "Part of the statutory framework for operating nursing homes.",
"modified": [
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},
"citation": "144A.1888",
"subdivision": ""
},
{
"analysis": {
"added": [
""
],
"removed": [
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"summary": "Referenced in operational requirements for for-profit entities managing nursing homes.",
"modified": [
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},
"citation": "256R",
"subdivision": ""
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{
"analysis": {
"added": [
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"summary": "Violation of this provision constitutes an unfair practice, enforceable by the attorney general.",
"modified": [
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},
"citation": "325F.69",
"subdivision": "subdivision 1"
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{
"analysis": {
"added": [
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"removed": [
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"summary": "Provides enforcement powers to the attorney general for violations.",
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"citation": "8.31",
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]