Senate Bill No. 1480, effective October 1, 2025, introduces new regulations regarding the ownership of hospitals and nursing homes by private equity companies and real estate investment trusts (REITs). The bill defines "private equity company" as any entity that collects capital investments to acquire ownership shares in these healthcare facilities. To qualify for Medicaid reimbursement for health care services, nursing homes and hospitals must be free of any new ownership interests from private equity companies or REITs recorded after the specified date.

The bill aims to ensure that Medicaid funds are allocated to facilities that do not have these ownership interests, potentially leading to savings for the Department of Social Services. The fiscal impact of this legislation is uncertain, as it depends on the ability of nursing homes and hospitals to comply with the new ownership requirements. The bill reflects a significant shift in the regulatory landscape for healthcare facilities, emphasizing the need for ownership transparency to maintain eligibility for state-funded healthcare services.