Bill
HB 7172
Requires 60-day notice and enhanced disclosures to state agencies for material changes by private equity in Rhode Island health care providers, with up to five-year monitoring.
Title: AN ACT RELATING TO HEALTH AND SAFETY -- HEALTH CARE AND SOCIAL SERVICES TRANSACTION REVIEW AND SIGNIFICANT EQUITY INVESTOR DISCLOSURE ACT
Jurisdiction: Rhode Island, Rhode Island General Assembly
Introduction
- Introduced January 21, 2026 by Representatives Casimiro, Giraldo, Donovan, Read, Spears, Shallcross Smith, Potter, and Hopkins; co-sponsored by several members.
- Referred to House Corporations.
- Enacted as an act to take effect upon passage.
Purpose and intent
- The bill addresses increasing ownership/control by private equity or similar investment structures in Rhode Island health care and social services entities.
- It seeks greater transparency and government review of material ownership or control changes that could affect cost, access, quality, workforce stability, and continuity of care.
Key definitions (Chapter 23-17.31)
- Covered care entity: A health care facility/provider licensed or certified by state departments (Health, Behavioral Health, Developmental Disabilities, Hospitals; or Children, Youth, and Families) operating in the state.
- Management services organization (MSO): An entity providing administrative/operational services to a covered care entity for compensation.
- Material change: Any transaction altering ownership/control or involving a significant equity investor that affects ownership, governance, or control of a covered care entity, provider organization, or MSO.
- Private equity company: An investment firm or related entities that acquire ownership stakes for financial return (excludes venture capital firms funding startups or early-stage ventures).
- Provider organization: Entity that contracts with, employs, or manages one or more covered care entities.
- Significant equity investor: A private equity company with a direct/indirect ownership in a covered care entity/provider organization/MSO, or any investor/group holding 10%+ of equity, profits, or governance rights in such entities.
Notice and disclosure requirements
1) Notice of material change (24-17.31-3)
- Timing: 60 days prior to the effective date of a material change.
- Filing parties: With the Rhode Island Department of Health (RIDOH) and the Department of Attorney General (AG).
- Contents: Identification of parties/controlling persons, transaction structure, post-transaction ownership/governance, and identification of any significant equity investor.
- Note: Filing does not equate to approval unless required by other laws.
2) Enhanced disclosures for significant equity investor transactions (24-17.31-4)
- RIDOH, in consultation with AG and licensing agencies, may require additional information for material changes involving a significant equity investor, including:
- Capital structure of the significant equity investor
- Ownership/management structure
- Sources and uses of financing
- Audited financial statements or equivalent information
- Management services, lease, or related-party agreements
- Post-transaction reporting: Departments may require periodic reporting for up to five years to assess impacts on service availability, cost, workforce stability, and continuity of care.
Confidentiality
- Confidential financial information submitted under this chapter is protected from public disclosure to the extent allowed by law. A public summary may omit sensitive details.
Enforcement and rules
- Civil penalties for non-compliance: Up to $10,000 per day, enforceable by the AG.
- RIDOH (and related agencies) may promulgate rules and regulations with input from affected agencies.
Coordination with existing law
- Does not modify or supersede the Hospital Conversions Act (Chapter 17.14 of Title 23) where applicable.
- Compliance with healthcare pre-merger notification rules/regulations from the AG can satisfy this chapter’s notice requirements.
- Agencies may permit concurrent filings and deem duplicative requirements satisfied.
Effective date
- The act takes effect upon passage.
Potential impact and implications
- Increases oversight of material changes involving significant equity investors in Rhode Island health care and social services providers.
- Improves transparency around ownership, governance, and financial structure of entities that affect care delivery.
- Provides the state with opportunity to assess and monitor potential impacts on access, cost, quality, and workforce stability for up to five years after a material change.
- Establishes penalties for non-compliance and a framework for confidential handling of sensitive information.
Overall, HB 7172 aims to balance investor participation in health and social services with public accountability and protection of patient access and care quality.
Compiled from official sources — confirm details with the bill’s official record.
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