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LD 985

An Act To Impose A Moratorium On The Ownership Or Operation Of Hospitals In The State By Private Equity Companies Or Real Estate Investment Trusts

132nd Legislature (2025-2026) Introduced by Rick Bennett and 3 co-sponsors

A moratorium bans private equity firms and REITs from owning or operating Maine hospitals, halting deals to shield patient access and local control.

Became Law without Governor's Signature
#healthcarefacilities #hospitals #ownership
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Bill Summary · LD 985

Summary — LD 985

An Act To Impose A Moratorium On The Ownership Or Operation Of Hospitals in the State by Private Equity Companies or Real Estate Investment Trusts

Main purpose and intent

LD 985 imposes a moratorium on the ownership or operation of Maine hospitals by private equity (PE) firms and real estate investment trusts (REITs). The bill was presented as a consumer- and community-protection measure intended to pause or prevent ownership transfers to financial investors whose business models critics argue can prioritize short‑term returns over patient access, staffing, and local control.

Key provisions (based on available documents)

  • Establishes a moratorium prohibiting private equity companies and real estate investment trusts from acquiring ownership of, or operating, hospitals located in Maine.
  • The bill was amended in Committee (Committee Amendment “A” (S‑299)) and enacted as amended; the legislative history indicates the amended version is the version that became law.
  • No fiscal impact was identified in the preliminary and subsequent fiscal notes for the original bill and amended versions.

Note: The provided materials do not include the full statutory text (duration of the moratorium, precise definitions of “private equity company” and “real estate investment trust,” exemptions, enforcement mechanisms, or penalty provisions). For the exact legal language, effective duration, and any carve-outs, consult the enacted statute or the engrossed bill text.

Who is affected

  • Private equity firms and REITs seeking to purchase or operate hospitals in Maine — immediate prospective transactions by such entities would be halted or constrained while the moratorium is in place.
  • Hospitals and hospital boards engaged in sale, merger, or management‑service arrangements with PE/REIT entities.
  • Hospital employees, patients, and local communities could be indirectly affected by changes in transaction activity, governance, or investment decisions.
  • State regulators and legal counsel involved in reviewing or approving hospital ownership and operation transactions.

Legislative and procedural timeline

  • Introduced: March 11, 2025 (sponsored by Sen. Tipping of Penobscot).
  • Referred to the Health Coverage, Insurance and Financial Services Committee; Committee recommended Ought to Pass as Amended (OTP‑AM) and Committee Amendment “A” (S‑299) was adopted.
  • Passed both legislative bodies as an emergency measure requiring a two‑thirds vote.
  • Enacted: Became law without the Governor’s signature on June 22, 2025. Because it was passed as an emergency measure, it took effect upon enactment (see final statute for exact effective date language).

Fiscal impact

  • Multiple fiscal notes (preliminary and as amended) state: “No fiscal impact.”

Practical implications and uncertainties

  • The moratorium will likely pause or prevent transactions in which PE/REIT entities would assume ownership or operational control of Maine hospitals while it is in effect.
  • The absence of the full bill text in the provided documents means details important for implementation — such as definitions, scope, duration, exceptions, and enforcement authority — are not described here. Review the enacted statute or the engrossed bill (as amended) for those specifics.

For the precise statutory wording, effective dates, definitions, and any exemptions or enforcement mechanisms, consult the final enrolled bill or the Maine Revised Statutes as amended by LD 985.

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

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