Senate Bill No. 1480, effective October 1, 2025, establishes new requirements for nursing homes and hospitals in Connecticut regarding ownership interests. Specifically, the bill mandates that these facilities must be free of any new ownership interests from private equity companies or real estate investment trusts (REITs) recorded on or after the effective date in order to qualify for Medicaid reimbursement for healthcare services. The definitions of "nursing home," "hospital," "private equity company," and "real estate investment trust" are clarified in the bill, aligning them with existing statutes and federal definitions.

The bill may lead to potential savings for the Department of Social Services (DSS) as it imposes conditions for Medicaid payments based on ownership structures. If nursing homes or hospitals fail to comply with the new ownership restrictions, they may lose eligibility for Medicaid reimbursement, which could impact their financial operations. The ongoing fiscal implications of this legislation will depend on the ability of these facilities to meet the outlined conditions.