The Private Equity Stakeholder Project reports that eight states enacted new laws in 2026 broadening oversight of private equity in healthcare.
The nonprofit’s 2026 State Healthcare Policy Review, published Sept. 22, tracks new or expanded measures in six states plus two 2025 laws now taking effect.
1. Maine: Created an administrative approval process for private equity-backed healthcare transactions, giving regulators authority to approve, impose conditions on, or reject covered deals.
2. Washington: Expanded its healthcare transaction-notice law to cover changes in control, asset transfers, and hospital real estate sale-leasebacks.
3. Illinois: Enacted laws addressing upstream owner transactions and requiring disclosures from providers serving people with developmental disabilities.
4. Connecticut: Prohibited hospital sale-leasebacks outright and established private equity ownership disclosure and governance attestation requirements for hospitals and nursing homes.
5. Vermont: Barred private equity firms and hedge funds from interfering with clinical and operational decisions at healthcare facilities.
6. Delaware: Restricted ownership arrangements that let outside parties control professional practices without holding an ownership interest.
7. California: Began implementing a 2025 law granting the state attorney general authority to act against private equity control of medical practices.
8. Oregon: Began implementing a separate 2025 law tightening state oversight of private equity healthcare transactions.
“States across the country are taking a much closer look at how private equity operates in healthcare and where existing oversight falls short,” said Mr. Michael Fenne, PESP’s senior policy coordinator.
PESP tracked 1,029 private equity-backed healthcare deals in 2025. More than 550 U.S. hospitals — roughly 1 in 8 private, nongovernment hospitals — are now private equity-owned, and over 500 facilities operate through PE-nonprofit joint ventures.
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