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SB 1998

HEALTH CARE CONSOLIDATION

104th Regular Session Introduced by Graciela Guzmán

Illinois SB 1998 requires 30-day notice to the AG and AG consent for health care mergers, acquisitions, or contracting affiliations; targets big players; sunsets Jan 1, 2027.

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Bill Summary · SB 1998

SB 1998 — Health Care Consolidation (Summary)

Status: Enacted (introduced Feb 6, 2025; signed by Governor May 21, 2025; effective immediately)
Bill number: SB1998 (companion: HB 4438)
Primary sponsor(s): Sen. Graciela Guzmán (introduced); list shows Huffman as a sponsor

Purpose and intent

SB 1998 amends the Illinois Antitrust Act (740 ILCS 10/7.2a) to increase state oversight of mergers, acquisitions, and contracting affiliations involving health care facilities and provider organizations. The bill requires advance notice to — and affirmative consent from — the Illinois Attorney General (AG) before certain health care transactions may take effect. The provision is scheduled to be repealed January 1, 2027.

Key provisions

  • Requires health care facilities and provider organizations party to a “covered transaction” to notify the Illinois Attorney General at least 30 days before the transaction’s closing or effective date.
  • Establishes that the Attorney General must consent to covered transactions of health care facilities before those transactions may take effect (synopsis language).
  • Defines covered transactions to include mergers, acquisitions, or contracting affiliations among health care facilities or provider organizations not previously under common ownership or contracting affiliation.
  • Provides detailed statutory definitions, including:
    • “Health care facility” (e.g., hospitals, ambulatory surgical treatment centers, kidney disease/dialysis centers, outpatient surgical facilities, and other specified facilities delivering certain high-acuity services).
    • “Provider organization” (entities that represent 20 or more providers in contracting with health carriers).
    • “Health care services revenue” (total revenue for health care services in the prior 12 months).
    • “Private equity group” and “hedge fund” (definitions and certain exclusions, such as lenders providing secured financing).
    • “Illinois health care entity” versus “out‑of‑state health care entity.”
  • Puts a notice trigger for covered transactions involving out‑of‑state entities that generate $10,000,000 or more in annual revenue from patients residing in Illinois (text truncated in source but threshold is specified).

Who is affected

  • Hospitals, ambulatory surgical centers, dialysis centers, outpatient surgical facilities and other specified health care facilities licensed under Illinois law.
  • Provider organizations (e.g., provider networks, physician-hospital organizations, IPAs, ACOs) representing 20+ providers.
  • Investors and acquirers, including private equity groups, hedge funds, and out‑of‑state health care entities meeting the revenue threshold.
  • The Illinois Attorney General (new review/consent role) and, indirectly, patients and health insurers insofar as consolidation affects access, prices, or competition.

Potential impact and considerations

  • Increases state review and control over health care consolidations — may slow or block transactions the AG believes harm competition, access, or affordability.
  • Raises compliance obligations for acquiring parties (notice and obtaining AG consent) and could increase transaction costs and timelines.
  • Targets acquisitions and contracting affiliations that shift control or materially affect operations — especially those involving private equity/hedge funds or large out‑of‑state entities.
  • The statutory provision is temporary (sunset Jan 1, 2027), suggesting a limited-term regulatory experiment or data-gathering period.

Procedural timeline

  • Introduced: February 6, 2025
  • Passed both chambers: May 8, 2025
  • Sent to Governor: May 9, 2025
  • Signed by Governor / Effective immediately: May 21, 2025

If you want, I can prepare a short comparison showing how SB 1998 differs from current practice or summarize related litigation/AG authority under the Illinois Antitrust Act.

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

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