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SB 1507 Connecticut Senate · 2025 Regular Session

AN ACT PROHIBITING PRIVATE EQUITY OWNERSHIP AND CONTROL OF HOSPITALS AND HEALTH SYSTEMS AND THE CONTROLLING OF OR INTERFERENCE WITH THE PROFESSIONAL JUDGMENT AND CLINICAL DECISIONS OF CERTAIN HEALTH CARE PROVIDERS AND REQUIRING AN EVALUATION OF THE APPOINTMENT OF A RECEIVER TO MANAGE HOSPITALS IN FINANCIAL DISTRESS.

SB 1507 prohibits private equity firms and real estate investment trusts (REITs) from owning or controlling hospitals and health systems starting October 1, 2025, and bans any interference with doctors, nurses, and other clinicians’ independent medical decisions. The bill specifically prevents hospitals or management organizations from directing clinical choices - such as patient discharge timing, diagnoses, or treatment options - through tactics like excessive pressure or retaliation. It also voids any agreements (e.g., non-disparagement clauses) that restrict clinicians’ professional judgment, making such contracts unenforceable. Additionally, the bill requires the state to evaluate appointing a financial receiver to manage hospitals in severe financial distress.
Issues: ✓ HealthcareSupports HealthcareProhibits private equity control of hospitals and protects clinicians' independent medical decisions, advancing patient care quality and provider autonomy per bill's core provisions.95% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Mar 2025
Committee Review
Floor Vote
Governor
Introduced Mar 12, 2025 Last action Apr 9, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → PH Joint Favorable Substitute · 5 edits
MODERATE
The bill was amended to narrow its scope from prohibiting private equity ownership of health care institutions to specifically targeting hospitals and health systems. The language was refined to clarify definitions and strengthen protections for clinicians' professional judgment and clinical decisions.
Scope change
The bill's scope was narrowed from 'certain health care institutions' to specifically 'hospitals and health systems', and the prohibition was expanded to include real estate investment trusts alongside private equity companies.
SCOPE

Changed the title and scope from prohibiting private equity ownership of 'certain health care institutions' to specifically prohibiting ownership and control of 'hospitals and health systems'.

DEFINITION

Reorganized and clarified definitions of 'health system', 'hospital', 'private equity company', and 'real estate investment trust' to align with the narrowed scope.

REQUIREMENT

Added new provisions prohibiting management services organizations and licensed health care facilities from interfering with clinicians' professional judgment and clinical decisions.

ENFORCEMENT

Added specific provisions voiding nondisclosure agreements and policies that violate the bill, and authorized the Department of Public Health to adopt implementing regulations.

TIMELINE

Maintained the October 1, 2025 effective date for ownership restrictions and July 1, 2025 effective date for clinical decision protections.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
9
Key actions
1
Committee
2
Mar 21, 2025
Upper · Passed
Joint Favorable Substitute
upper
Mar 12, 2025
Committee
REF. TO JOINT COMM. ON Public Health
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.