Three Connecticut hospitals went bankrupt this year, all of which were owned by Prospect Medical Holdings, a private health care group.
Lawmakers have now introduced Senate Bill 1507, which would ban private equity ownership in health care facilities.
Supporters said it would ensure patients are prioritized over profit.
Restricting private equity in health care would create “a mechanism of preventing the conflict of interest,” Connecticut State Sen. Saud Anwar (D-South Windsor) said.
Lawmakers said they want proper safeguards to ensure that clinicians make decisions about patient care rather than being steered by financial decisions.
Boyd Jackson, director of legislation and regulation at the State Office of Health Strategy, said the definition of private equity varies, and he’s concerned about the blanket nature of a ban.
“OHS believes that transparency in these types of transactions and review of these transactions, the ability to halt them if there are overwhelming concerns, or the ability to impose conditions is a more appropriate way to address this broad group of transactions rather than an outright ban,” Jackson said.
The bill would also require an evaluation of receivership for hospitals in financial distress.
