Proposed Illinois Amendments Would Help Capture Healthcare Private Equity Investments

A legislator on February 4, 2026, introduced HB5000, an amendment to Illinois' healthcare reporting statute that would broaden the types of transactions subject to the existing 30-day reporting process and ensure that certain private equity investments in healthcare facilities are captured. A companion bill, SB3463, also was proposed in the Illinois Senate.

Under existing reporting requirements, a covered transaction, which requires a 30-day notice to the state's attorney general, is defined as "any merger, acquisition, or contracting affiliation between 2 or more health care facilities or provider organizations" (emphasis added). The amendment updates the definition by replacing "between" with "involving," which broadens the types of transactions that could fall into the reporting processes.

Moreover, the parties involved in a covered transaction are expanding from healthcare facilities and provider organizations to include those entities that own or control, "directly or indirectly, one or more of the 2 or more health care facilities or provider organizations that will be under common ownership." This broader definition would include private equity companies, which are directly referenced in the amendment.

Private equity companies are defined as "any company or partnership that collects capital investments from individuals or entities and purchases … so that the company completely or partially owns or controls a direct or indirect ownership share of an Illinois health care entity or an out of state health care entity that generates $10 million or more in annual revenue from patients residing in [Illinois]."

New Terms

The bill also introduces new terms affecting how provider organizations are defined:

• "Health care provider" means an individual or entity duly licensed or legally authorized to provide health care services.
• "Health care services" means healthcare services or products rendered or sold by a healthcare provider within the scope of the healthcare provider's license or legal authorization. The term includes, but is not limited to, hospital, medical, surgical, dental, vision, and pharmaceutical services or products.
• "Provider organization" means a corporation, partnership, business trust, association or organized group of persons, whether incorporated or not, that is in the business of healthcare delivery or management and represents 20 or more healthcare providers in contracting with health carriers or third-party administrators for the payment of healthcare services. "Provider organization" includes physician organizations, physician-hospital organizations, independent practice associations, provider networks and accountable care organizations.

These defined terms further enforce the notion that management service organizations and dental service organizations should analyze whether they meet the definition of a "provider organization" because now even private equity investment could trigger a notice requirement.

However, the definition of "provider organization" remains unchanged and still does not clarify what it means to "represent 20 or more health care providers in contracting with health carriers or third-party administrators for the payment of health care services." Stakeholders in the market have long wanted to understand whether "in contracting" refers to a party that directly contracts with payers and arranges care to be provided by healthcare providers or a party that merely provides payer administrative services to providers.

Finally, the amendment would remove the sunset date of January 1, 2027, for the existing reporting statute, cementing the reporting process for years to come.

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