Connecticut HB 5316: AN ACT PROHIBITING REAL ESTATE INVESTMENT TRUSTS FROM ACQUIRING OR INCREASING OPERATIONAL CONTROL OVER HOSPITALS OR HEALTH SYSTEMS AND PROHIBITING HOSPITALS AND HEALTH SYSTEMS FROM ENTERING INTO SALE-LEASEBACK FINANCING TRANSACTIONS.

Bill Text

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General Assembly Substitute Bill No. 5316
February Session, 2026

AN ACT PROHIBITING REAL ESTATE INVESTMENT TRUSTS FROM
ACQUIRING OR INCREASING OPERATIONAL CONTROL OVER
HOSPITALS OR HEALTH SYSTEMS AND PROHIBITING HOSPITALS
AND HEALTH SYSTEMS FROM ENTERING INTO SALE-LEASEBACK
FINANCING TRANSACTIONS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026) (a) As used in this section: 1
(1) "Health system" means (A) a parent corporation of one or more 2
hospitals and any entity affiliated with such parent corporation through 3
ownership, governance, membership or other means, or (B) a hospital 4
or any entity affiliated with such hospital through ownership, 5
governance, membership or other means; 6
(2) "Hospital" has the same meaning as provided in section 19a-646 7
of the general statutes; 8
(3) "Main campus of a hospital" means the licensed premises within 9
which the majority of inpatient beds are located; 10
(4) "Operational control" means to (A) influence or direct the actions 11
or policies of any part of a hospital or health system, or (B) choose, 12
appoint or terminate a member of the board, manager, managing 13
member, senior employee, consultant or other individual or entity that 14
participates in the operational oversight of a hospital or health system; 15

Substitute Bill No. 5316

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(5) "Person" has the same meaning as provided in section 1-79 of the 16
general statutes; 17
(6) "Real estate investment trust" has the same meaning as provided 18
in 26 USC 856, as amended from time to time; and 19
(7) "Sale-leaseback transaction" means a transaction in which a 20
hospital or health system enters into an agreement with another person 21
to sell and lease back hospital or health system-owned real property that 22
constitutes the main campus of a hospital. 23
(b) On and after October 1, 2026, no real estate investment trust shall 24
(1) acquire any operational control over a hospital or health system; or 25
(2) increase any operational control that the real estate investment trust 26
has over a hospital or health system. 27
(c) On and after October 1, 2026, no hospital or health system shall 28
enter into a sale-leaseback transaction. 29
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 New section

Statement of Legislative Commissioners:
In Subsec. (b)(2), "health care system" was changed to "health system"
for consistency with other provisions of the Section.

BA Joint Favorable Subst. -LCO