The bill amends Section 135C.7A of the Iowa Code by adding a new subsection that prohibits the Department of Inspections, Appeals, and Licensing (DIAL) from approving changes in ownership of previously licensed nursing facilities under certain conditions. Specifically, ownership changes will not be approved if the prospective owner is a private equity fund, is majority-owned by a private equity fund, is an affiliate of a private equity fund, is a real estate investment trust, is majority-owned by a real estate investment trust, or is an affiliate of a real estate investment trust.

This legislative change aims to restrict the influence of private equity funds and real estate investment trusts in the ownership of nursing facilities, reflecting concerns about the impact of such ownership structures on the quality of care and operational integrity of these facilities. The bill underscores a commitment to maintaining standards in nursing home management and ensuring that ownership remains with entities that prioritize patient care over profit.

Statutes affected:
Introduced: 135C.7A