The General Assembly Raised Bill No. 5316 aims to prohibit real estate investment trusts (REITs) from acquiring or increasing operational control over hospitals or health systems, as well as to prevent hospitals and health systems from engaging in sale-leaseback financing transactions. The bill defines key terms such as "health system," "hospital," "operational control," and "sale-leaseback transaction," establishing a clear framework for the regulations. The effective date for these prohibitions is set for October 1, 2026.

Specifically, the bill states that starting on the effective date, no REIT shall acquire or increase operational control over any hospital or health system. Additionally, hospitals and health systems are barred from entering into sale-leaseback transactions involving their main campus properties. This legislation is intended to safeguard the operational integrity of hospitals and health systems from external financial influences that could compromise their mission and service delivery.