WeVote
Log In

Bill

Bill

HB 5316

AN ACT PROHIBITING REAL ESTATE INVESTMENT TRUSTS FROM ACQUIRING OR INCREASING OPERATIONAL CONTROL OVER HOSPITALS OR HEALTH SYSTEMS AND PROHIBITING HOSPITALS AND HEALTH SYSTEMS FROM ENTERING INTO SALE-LEASEBACK FINANCING TRANSACTIONS.

2026 Regular Session Introduced by Eric Berthel and 3 co-sponsors

Connecticut bill prohibits REITs from owning/controlling hospitals and bars sale-leaseback financing for health systems to preserve local operational autonomy and prevent rising patient care costs.

REF. BY HOUSE TO COMMITTEE ON Public Health
#hospitals #medicalcare #realestateinvestmenttrusts
0
WeVote Research Nonpartisan
Bill Summary · HB 5316

Legislative bill overview

HB 5316 would prohibit Real Estate Investment Trusts (REITs) from acquiring ownership or operational control of hospitals and health systems in Connecticut. It also bars hospitals and health systems from entering sale-leaseback financing arrangements, a structure where a hospital sells its property to a REIT and then leases it back.

Why is this important

Healthcare facility ownership structures directly affect patient care costs, operational autonomy, and community health access. Sale-leaseback deals and REIT ownership have grown nationally, raising concerns about rising operational costs passed to patients and reduced local decision-making authority over essential medical services.

Potential points of contention

  • Economic impact on healthcare financing: Hospitals currently use sale-leaseback transactions to raise capital for operations and expansions; restricting this limits financing options and may increase borrowing costs through traditional bank loans
  • Property rights and market freedom: The bill restricts voluntary business transactions between private entities, raising questions about government intervention in contractual agreements
  • Definitional clarity: "Operational control" may be ambiguous—unclear whether joint ventures, management contracts, or partial ownership interests would be restricted
  • Competitive disadvantage: Connecticut hospitals may face disadvantages competing with out-of-state healthcare systems that can utilize REIT financing structures
  • Existing arrangements: Unclear whether the prohibition applies retroactively to established REIT-hospital relationships already in place

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.