Senator Hochadel Leads Passage of Bill Protecting Residents of Private Equity-Owned Nursing Homes
HARTFORD — Senator Jan Hochadel (D-Meriden), Senate Chair of the Aging Committee, led passage of Senate Bill 125, requiring nursing homes with private equity ownership to disclose their financial structures to the state and prohibiting private equity firms from controlling resident care decisions.
“I’ve seen firsthand what happens in nursing homes when some of the private equity firms take control. Staffing gets cut, care suffers, and when the finances collapse, it’s the residents who are left without the support they depend on and the state is often left paying the bill,” Senator Hochadel said. “SB 125 ensures the state knows who actually owns, controls and manages these facilities. Our loved ones deserve a system that puts their care first, and this legislation helps ensure Connecticut delivers that protection.”
SB 125 includes the following provisions related to private equity ownership of nursing homes:
- Requires nursing homes with private equity ownership to submit annual financial disclosures to the Commissioner of Social Services
- Requires that the entity holding a nursing home’s license maintain full governance and authority over the home’s assets and activities, so that the facility has control over residents’ health, safety, or care decisions. The bill gives nursing homes until February of 2028 to comply with this provision
- Requires the Department of Social Services to identify possible security instruments in the event that the nursing home is closed, enters receivership, or has any imminent financial distress
- Directs the Commissioners of Social Services and Public Health to study implications of restricting real property sales within five years of acquisition, with findings due to the General Assembly by February 2028
- Establishes civil penalties of up to $2,000 per violation for attestation failures and $1,000 per day for financial disclosure failures