The bill, identified as Substitute House Bill No. 5319 with File No. 446, requires the executive director of the Office of Health Strategy to develop a plan regarding private equity firms acquiring or holding an ownership interest in health care facilities in the state. The plan must include an assessment of whether a certificate of need should be required for such acquisitions and the feasibility of other limitations on private equity firms in this context. Additionally, the plan should recommend requirements for the disclosure of information by health care facilities when a private equity firm acquires or holds an ownership interest. The executive director is mandated to report the plan and recommendations for any necessary legislation to the joint standing committee of the General Assembly related to public health by January 1, 2025.

The fiscal impact statement indicates that the bill will result in a one-time cost of $200,000 in FY 25 to the Office of Health Strategy, which will need to hire a consultant due to a lack of available resources or expertise to complete the plan by the specified date. The costs associated with the Health Systems Planning Unit, which administers the certificate of need process, are recovered through an assessment collected from state hospitals, leading to a revenue gain to the General Fund that offsets the cost to the Office of Health Strategy. The bill does not have any municipal impact. The act is effective from passage and amends a new section as indicated by the insertions.