S.B. 3118 and H.B. 4728 Testimony

The Private Equity Stakeholder Project (PESP) testified in support of Illinois bills S.B. 3118 and H.B. 4728, arguing that private equity ownership of intellectual or developmental disability (IDD) services prioritizes short-term profits over patient care. PESP highlights risks such as 'dividend recapitalization'—where firms like Centerbridge Partners and Vistria Group extracted over $737 million from providers Sevita and Help at Home—and the case of Bain Capital's Broadstep Behavioral Health, whose license to operate group homes in Illinois was revoked in July 2024 due to repeat quality standard violations.

• Private equity firms are targeting the IDD services sector due to its recession-resistant nature, high market fragmentation, and increasing demand driven by the closure of state facilities and increased longevity of individuals with IDD.
• The private equity business model, which typically aims to double or triple investment value within 4 to 7 years, creates a risk of cost-cutting that compromises the quality of care for people with IDD.
• Centerbridge Partners and Vistria Group used 'dividend recapitalization' to extract over $737 million from their portfolio companies, Sevita and Help at Home, loading the providers with debt while the owners paid shareholders.
• In Illinois, the Division of Developmental Disabilities (DDD) revoked the license of Bain Capital-owned Broadstep Behavioral Health to operate as a Community Integrated Living Arrangement (CILA) provider in July 2024 following repeat violations of quality standards, including medication administration issues and deficient staff training.

APA

Private Equity Stakeholder Project (2026). S.B. 3118 and H.B. 4728 Testimony. https://pestakeholder.org/wp-content/uploads/2026/05/3-25-26-IL-SB3118_HB4728-Testimony-PESP-FINAL.pdf

Chicago

Private Equity Stakeholder Project. S.B. 3118 and H.B. 4728 Testimony. 2026. https://pestakeholder.org/wp-content/uploads/2026/05/3-25-26-IL-SB3118_HB4728-Testimony-PESP-FINAL.pdf.

Wikipedia

{{cite press release |author=Private Equity Stakeholder Project |title=S.B. 3118 and H.B. 4728 Testimony |date=25 March 2026 |url=https://pestakeholder.org/wp-content/uploads/2026/05/3-25-26-IL-SB3118_HB4728-Testimony-PESP-FINAL.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{privateequitystakeholderproject20263118, author = {{Private Equity Stakeholder Project}}, title = {{S.B. 3118 and H.B. 4728 Testimony}}, publisher = {Private Equity Stakeholder Project}, year = {2026}, month = mar, url = {https://pestakeholder.org/wp-content/uploads/2026/05/3-25-26-IL-SB3118_HB4728-Testimony-PESP-FINAL.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }