Massachusetts Enacts New Curbs on Private Equity in Healthcare

Healthcare Transactions attorney John Saran was cited in a Bloomberg article about a bill in Massachusetts that would increase oversight of private equity investments in the healthcare industry. The legislation, which Gov. Maura Healy plans to sign Jan. 8, 2025, will create financial reporting requirements for private equity investors, real estate investment trusts (REITs) and management service organizations and increase fines for noncompliance, in addition to granting the Massachusetts Health Policy Commission authority to seek testimony from financial sponsors at its annual cost trends hearing. Mr. Saran explained other states also have laws allowing regulators to review financial information prior to a private equity transaction involving a local provider; however, Massachusetts' version goes a step further by incorporating information about normal operations into the reporting obligations, though it does not give the state power to block a deal altogether.

The article was also published in Modern Healthcare, Pensions & Investments and Benefits Pro.

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