State Healthcare Policy Review

The 2026 State Healthcare Policy Review examines US state efforts to regulate private equity in healthcare, focusing on transparency, approval authority, targeted prohibitions, and the corporate practice of medicine. While several states enacted new disclosure and reporting laws, few expanded the power to block transactions, and many stringent proposals were narrowed or failed. Key developments include Maine's new administrative approval process and Connecticut's ban on hospital sale-leasebacks.

• State legislatures are shifting focus from simple ownership notification to identifying control exercised through management services organizations (MSOs) and upstream entities, with a preference for disclosure over categorical ownership bans.
• Eight bills focused on transparency and reporting became law in 2026 across California, Washington, Illinois, Maine, Connecticut, and Vermont, with Rhode Island implementing a similar system via Attorney General rulemaking.
• Maine established the only new administrative approval process in 2026 for private equity-backed transactions, allowing the Department of Health and Human Services to approve, condition, or reject acquisitions based on factors like affordability and quality.
• Connecticut enacted a prohibition on hospital sale-leasebacks, specifically preventing hospitals from selling and leasing back their main campus, a move driven by the bankruptcy of Prospect Medical Holdings.
• Delaware implemented a temporary moratorium until July 1, 2028, prohibiting for-profit entities from gaining control of nonprofit acute care hospitals.
• Several states are strengthening 'corporate practice of medicine' laws to prevent non-medical investors from controlling clinical decisions; California and Oregon began implementing such laws in 2026, and Vermont enacted Act 133 in June 2026.

APA

Private Equity Stakeholder Project (2026). State Healthcare Policy Review. https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_State-Healthcare-Policy_2026.pdf

Chicago

Private Equity Stakeholder Project. State Healthcare Policy Review. 2026. https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_State-Healthcare-Policy_2026.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=State Healthcare Policy Review |date=September 2026 |url=https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_State-Healthcare-Policy_2026.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2026state, author = {{Private Equity Stakeholder Project}}, title = {{State Healthcare Policy Review}}, institution = {Private Equity Stakeholder Project}, year = {2026}, month = sep, url = {https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_State-Healthcare-Policy_2026.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }