1.1 A bill for an act
1.2 relating to commerce; prohibiting private equity companies and real estate
1.3 investment trusts from acquiring or increasing control over providers of health
1.4 care services; proposing coding for new law in Minnesota Statutes, chapter 62J.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [62J.97] PRIVATE EQUITY COMPANIES AND REAL ESTATE
1.7INVESTMENT TRUSTS.
1.8 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
1.9the meanings given.
1.10 (b) "Indirect ownership interest" means an ownership interest in (1) an entity that has
1.11an ownership interest in a provider, or (2) an indirect owner of a provider. The amount of
1.12indirect ownership interest is determined by multiplying the percentages of ownership in
1.13each entity.
1.14 (c) "Operational control" means the ability to:
1.15 (1) influence or direct the actions or policies of any part of a provider; or
1.16 (2) choose, appoint, or terminate a member of the board, manager, managing member,
1.17senior employee, consultant, or other individual or entity that participates in the operational
1.18oversight of a provider.
1.19 (d) "Ownership interest" means possession of equity in capital, stock, profits, or
1.20ownership of real estate on which a provider operates.
1.21 (e) "Private equity company" means a publicly traded or nonpublicly traded entity that
1.22collects capital investments from individuals or entities.
1Section 1.
25-05275 as introduced04/02/25 REVISOR RSI/ES
SENATE
STATE OF MINNESOTA
S.F. No. 3354NINETY-FOURTH SESSION
(SENATE AUTHORS: MOHAMED and Dibble)
OFFICIAL STATUSD-PGDATE
Introduction and first reading04/09/2025
Referred to Commerce and Consumer Protection 2.1 (f) "Provider" means an individual or entity that provides health or medical care services
2.2in Minnesota for a fee. For purposes of this paragraph, "for a fee" includes traditional
2.3fee-for-service arrangements, capitation arrangements, and any other arrangement in which
2.4a provider receives compensation for providing health or medical care services or has the
2.5authority to directly bill a group purchaser, health plan company, or individual for providing
2.6health or medical care services. Provider includes but is not limited to nursing homes, clinics,
2.7hospitals, ambulatory surgical centers, dental organizations, physician organizations, and
2.8integrated provider and plan systems.
2.9 (g) "Real estate investment trust" has the meaning given in United States Code, title 26,
2.10section 856.
2.11 Subd. 2.Moratorium.(a) A private equity company or real estate investment trust is
2.12prohibited from acquiring or increasing any direct or indirect ownership interest the private
2.13equity company or real estate investment trust has in a provider after August 1, 2025.
2.14 (b) A private equity company or real estate investment trust is prohibited from acquiring
2.15or increasing any operational or financial control the private equity company or real estate
2.16investment trust has over a provider after August 1, 2025. This paragraph does not prohibit
2.17a private equity company or real estate investment trust from replacing the provider's directors
2.18or employees in the normal course of business.
2Section 1.
25-05275 as introduced04/02/25 REVISOR RSI/ES