Iowa Senate Bill SF533

Iowa 2025-2026 Regular Session

• Introduced: 3/5/25
• Refer: 3/5/25

Caption

A bill for an act prohibiting certain changes of ownership of a previously licensed nursing facility.

Impact

If enacted, SF533 would directly amend Section 135C.7A of Iowa's law governing nursing facilities, thus impacting the existing framework that oversees such facilities. By establishing these restrictions, the bill could significantly affect potential investment flows into the nursing home sector, as it creates a barrier to ownership for certain capital sources that are commonly identified with profit-driven healthcare models. Those in support of the bill argue it is essential to keep nursing homes under local, not corporate, control, which they believe will yield better resident outcomes and community accountability.

Summary

Senate File 533, introduced by Senator Celsi, seeks to regulate ownership changes of previously licensed nursing facilities in Iowa. The bill stipulates that the Department of Inspections, Appeals, and Licensing (DIAL) is prohibited from approving any change of ownership for these facilities if the prospective owner is affiliated with certain financial entities. Specifically, it targets private equity funds and real estate investment trusts (REITs), ensuring that these types of entities cannot gain control of licensed nursing homes. The intent behind this legislation is to preserve the operational integrity of nursing facilities and safeguard the welfare of residents under their care.

Contention

The legislation has sparked debate among stakeholders in the healthcare community. Proponents argue that large financial entities prioritize profit margins over patient care, which can lead to negative outcomes for residents and communities. Conversely, critics may highlight the potential for unintended consequences, such as limiting funding and resources necessary for maintaining and improving nursing home facilities. The bill's emphasis on restricting ownership changes has raised concerns about rigidity in the ownership models allowed, which could hinder adaptability and modernization within the sector.