Senate Bill No. 1332 aims to enhance financial accountability in nursing homes by prohibiting private equity companies (PECs) and real estate investment trusts (REITs) from acquiring or increasing their ownership interest, operational control, or financial control over nursing homes starting October 1, 2025. The bill defines key terms such as "indirect ownership interest," "operational control," and "ownership interest," and specifies that these entities cannot influence or direct the actions or policies of nursing homes, nor can they appoint or terminate individuals involved in the operational oversight of these facilities.

Additionally, the bill mandates that individuals seeking a license to operate a nursing home that is partially or fully owned by a PEC or REIT must provide the Department of Public Health with evidence of compliance with the new regulations. This includes disclosing ownership structures and financial information, ensuring transparency in the ownership and management of nursing homes. The bill repeals and replaces certain provisions in existing law to incorporate these requirements, thereby reinforcing the accountability of nursing home ownership and management.