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The Entrance hall of Hartford State Capitol in Connecticut. Credit: iStock by Getty Images

A bill that seeks to bring more scrutiny to nursing home ownership and analyze private equity investment in nursing facilities gained final passage in the Connecticut House Wednesday.

The measure requires nursing home leaders to annually disclose information about each entity that has a beneficial ownership interest of at least 5%, including the name and address of the individual, partnership or corporation; the names of people who hold certain leadership positions; each partner’s ownership share; audited and certified financial statements; and other records.

Facilities that fail to submit the information may be subject to fines of $1,000 per day.

“This is a first step in understanding a business … so that we can protect consumers across the health care spectrum, but particularly through nursing home and extended care,” said Rep. Mitch Bolinsky, R-Newtown.

Additionally, beginning July 1, 2028, if a person or corporation has a beneficial ownership interest of at least 5%, the bill mandates that nursing homes have a surety bond (or similar security) equal to 90 days of operating costs.

The measure also requires each nursing home licensee to have full control over the facility’s “governance, assets, and activities,” and to annually attest that no investment entity has control over resident health, safety, or care.

The state Department of Social Services would have to review information submitted annually by nursing homes and compare the quality of care at facilities where an investment company has a beneficial interest with those that don’t.

“We hear the words ‘private equity’ all the time, and there are very good private equity [companies],” said Rep. Jane Garibay, D-Windsor, co-chair of the Aging Committee. “They are a force in our communities and nursing homes, but we want to better understand them.”

Matthew Barrett, president and CEO of the Connecticut Association of Health Care Facilities, said members of the legislature’s Aging Committee worked with industry leaders on the bill.

“It’s an important piece of legislation — and one we in the sector support — because there are significant new ownership disclosures reflected in the bill that will really serve the purpose of better informing consumers and their families about where they prefer to receive care,” he said.

The bill now heads to Gov. Ned Lamont’s desk.

Jenna is a reporter on The Connecticut Mirror’s investigative desk. Her reporting on gaps in Connecticut’s elder care system prompted sweeping changes in nursing home and home care policy. Jenna has also covered lapses in long-term care facilities, investigated the impact of cyberattacks on hospitals, and uncovered the questionable dealings of health ministry groups that masquerade as insurance. Her reporting sparked reforms in health care and government oversight, helped erase medical debt for Connecticut residents, and led to the indictments of developers in a major state project. Her work has been recognized by the National Press Foundation and the Association of Health Care Journalists. Before joining CT Mirror, she was a reporter at The Hartford Courant, where she covered government in the capital city with a focus on corruption, theft of taxpayer funds, and ethical violations.