2025 State Healthcare Policy Review

The 2025 State Healthcare Policy Review tracks a national trend of state-level efforts to regulate private equity in healthcare. It categorizes legislative approaches into transparency and reporting, approval and enforcement authority, targeted prohibitions, and Corporate Practice of Medicine (CPOM) enforcement. The report details laws passed in states like Massachusetts, California, Indiana, Oregon, New Mexico, Washington, and Maine, while also tracking pending and failed legislation in other states.

• State legislative responses to private equity in healthcare are categorized into four primary policy levers: transparency and reporting to make ownership visible; approval and enforcement authority to block risky transactions; targeted prohibitions against specific financial practices; and Corporate Practice of Medicine (CPOM) enforcement to protect clinical independence.
• Massachusetts enacted H.5159 in January 2025, which expands pre-closing notice requirements for transactions involving significant equity investors and prohibits new sale-leaseback arrangements of acute care hospital real estate with healthcare real-estate investment trusts (REITs).
• California passed SB 351 and AB 1415 in October 2025. SB 351 restricts private equity and hedge fund owners from interfering with professional clinical judgment, specifically prohibiting control over coding, billing, and the hiring/firing of clinical staff. AB 1415 requires notice to the Office of Health Care Affordability (OHCA) before closing material change transactions.
• Indiana's HB 1666, signed May 6, 2025, expands ownership disclosure requirements for hospitals, insurers, and pharmacy benefit managers (PBMs), requiring disclosure of any entity with at least 5% ownership or a controlling interest.
• Oregon's SB 951 restricts management services organizations (MSOs) from exercising control over the professional judgment of physician-owned entities and prohibits MSOs from owning a majority interest in a professional medical entity with which they contract.
• New Mexico's HB 586 expanded the 2024 Health Care Consolidation Oversight Act by extending review authority from hospitals to include certain provider organizations and real-estate transactions, while making the oversight framework permanent.
• Washington's HB 1686, effective July 27, 2025, mandates the development of a statewide healthcare entity registry to track ownership, control, and affiliations, with a final implementation plan due by 2028.
• Maine enacted LD 985 in June 2025, which established a one-year emergency moratorium prohibiting private equity firms or REITs from acquiring or increasing ownership or control in Maine hospitals.

APA

Fenne, M. (2025). 2025 State Healthcare Policy Review. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2025/11/PESP_Report_HC-Policy-Review_2025.pdf

Chicago

Fenne, Michael. 2025 State Healthcare Policy Review. Private Equity Stakeholder Project, 2025. https://pestakeholder.org/wp-content/uploads/2025/11/PESP_Report_HC-Policy-Review_2025.pdf.

Wikipedia

{{cite report |last1=Fenne |first1=Michael |title=2025 State Healthcare Policy Review |publisher=Private Equity Stakeholder Project |date=November 2025 |url=https://pestakeholder.org/wp-content/uploads/2025/11/PESP_Report_HC-Policy-Review_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fenne20252025, author = {Fenne, Michael}, title = {{2025 State Healthcare Policy Review}}, institution = {Private Equity Stakeholder Project}, year = {2025}, month = nov, url = {https://pestakeholder.org/wp-content/uploads/2025/11/PESP_Report_HC-Policy-Review_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }