The proposed bill aims to prohibit private equity companies and real estate investment trusts from acquiring or increasing their control over health care service providers in Minnesota. It introduces new legal definitions related to ownership and control, including terms such as "indirect ownership interest," "operational control," and "provider." The bill specifies that these entities will not be allowed to acquire or increase any direct or indirect ownership interest or operational or financial control over a provider after August 1, 2024. However, it does allow for the replacement of a provider's directors or employees in the normal course of business.

The bill establishes a moratorium on such acquisitions and control, emphasizing the protection of health care providers from potential overreach by private equity firms and real estate investment trusts. The effective date for these provisions is set for August 1, 2024, ensuring that stakeholders are aware of the timeline for compliance with the new regulations.