The proposed bill aims to regulate the involvement of private equity companies and real estate investment trusts (REITs) in the healthcare sector in Minnesota. It introduces new legal language under Minnesota Statutes, chapter 62J, specifically defining terms such as "indirect ownership interest," "operational control," "ownership interest," "private equity company," "provider," and "real estate investment trust." The bill establishes a moratorium that prohibits these entities from acquiring or increasing their direct or indirect ownership interests in healthcare providers after August 1, 2025.

Additionally, the bill restricts private equity companies and REITs from gaining operational or financial control over healthcare providers after the same date, although it allows for the normal replacement of directors or employees as part of regular business operations. This legislation seeks to safeguard the integrity of healthcare services by limiting the influence of profit-driven entities in the management and ownership of healthcare providers.