Purpose of the Bill

The purpose of this bill is to restrict private equity companies and real estate investment trusts from obtaining or expanding control over health care service providers in Minnesota.

Main Provisions

• Definition of Key Terms:

  • Private Equity Company: Any entity, public or private, that gathers investment capital from individuals or other entities.
  • Real Estate Investment Trust (REIT): Defined as per the relevant U.S. federal code, these trusts typically own and manage income-generating real estate.
  • Provider: Encompasses individuals or entities offering health or medical care for a fee, including hospitals, clinics, nursing homes, and similar organizations.
  • Operational Control: Includes the ability to influence provider actions, policies, managerial appointments, or oversight.
  • Ownership Interest: Refers to holding equity in the capital stock or real estate of a provider.

• Moratorium Provisions:

  • As of August 1, 2025, private equity companies and REITs are barred from acquiring or increasing direct or indirect ownership interests in providers of health care services.
  • These entities are also prohibited from gaining additional operational or financial control over these providers. However, regular business activities like replacing directors or employees are not restricted under this provision.

Significant Changes to Existing Law

This bill introduces new restrictions that prevent financial entities, such as private equity firms and REITs, from expanding their control within the healthcare sector, thereby aiming to preserve the current landscape of healthcare provider ownership and management in Minnesota.

Relevant Terms

• Private equity
• Real estate investment trust (REIT)
• Operational control
• Ownership interest
• Health care providers
• Moratorium