HF 4206

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/14/2024 03:59pm

A bill for an act
relating to commerce; prohibiting private equity companies and real estate
investment trusts from acquiring or increasing control over providers of health
care services; proposing coding for new law in Minnesota Statutes, chapter 62J.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [62J.96] PRIVATE EQUITY COMPANIES AND REAL ESTATE
INVESTMENT TRUSTS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Indirect ownership interest" means an ownership interest in (1) an entity that has
an ownership interest in a provider, or (2) an indirect owner of a provider. The amount of
indirect ownership interest is determined by multiplying the percentages of ownership in
each entity.
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new text begin (c) "Operational control" means to:
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new text begin (1) influence or direct the actions or policies of any part of a provider; or
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new text begin (2) choose, appoint, or terminate a member of the board, manager, managing member,
senior employee, consultant, or other individual or entity that participates in the operational
oversight of a provider.
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new text begin (d) "Ownership interest" means possession of equity in capital, stock, profits, or
ownership of real estate on which a provider operates.
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new text begin (e) "Private equity company" means a publicly traded or nonpublicly traded entity that
collects capital investments from individuals or entities.
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new text begin (f) "Provider" means an individual or entity that provides health or medical care services
within Minnesota for a fee. For purposes of this paragraph, "for a fee" includes traditional
fee-for-service arrangements, capitation arrangements, and any other arrangement in which
a provider receives compensation for providing health or medical care services or has the
authority to directly bill a group purchaser, health plan company, or individual for providing
health or medical care services. Provider includes but is not limited to nursing homes, clinics,
hospitals, ambulatory surgical centers, dental organizations, physician organizations, and
integrated provider and plan systems.
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new text begin (g) "Real estate investment trust" has the meaning given in United States Code, title 26,
section 856.
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new text begin Subd. 2. new text end

new text begin Moratorium. new text end

new text begin (a) A private equity company or real estate investment trust is
prohibited from acquiring or increasing any direct or indirect ownership interest the private
equity company or real estate investment trust has in a provider after August 1, 2024.
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new text begin (b) A private equity company or real estate investment trust is prohibited from acquiring
or increasing any operational or financial control the private equity company or real estate
investment trust has over a provider after August 1, 2024. This paragraph does not prohibit
a private equity company or real estate investment trust from replacing the provider's directors
or employees in the normal course of business.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024.
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