Connecticut Governor Ned Lamont signed a bill into law in June 2026 that implements greater oversight of private equity ownership of Connecticut’s nursing homes.
The legislation was supported by a bipartisan slate of Connecticut lawmakers and was championed by the state’s Long Term Care Ombudsman, Mairead Painter, who raised concerns over potential threats to nursing home residents’ safety and quality of care posed by unchecked private equity investment in the state’s nursing homes.
The law, P.A. 26-103, requires nursing homes to disclose information to the Department of Social Services regarding any and all investment entities with an ownership stake of 5 percent of more in the facility, including each entity’s name and business address; the names of officers, trustees and other leadership positions; the investment stake of each managing partner; and audited financial statements. For out-of-state investment firms, the law also requires a certificate of good standing from the Secretary of State’s office in each firm’s state of incorporation.
The law requires all nursing home licensees to maintain full control of clinical, managerial, personnel and financial operations and to attest annually that no investment entity has control over facility residents’ health, safety or care.
Starting July 1, 2028, the law will also require nursing homes with private equity investments above 5 percent to maintain a surety bond or similar security instrument equal to at least 90 days of operating costs to ensure residents are protected in the event the facility enters a receivership or faces closure for financial or safety reasons.
The law goes into effect on October 1, 2026. Nursing homes must submit required disclosures to the Department of Social Services no later than February 15, 2027 or be subject to fines up to $1,000 per day.
Connecticut’s law echoes policy efforts at the federal level to bring greater scrutiny to private equity nursing home investment. In a June 3, 2026 letter to CMS Administrator Mehmet Oz, Senators Cory A. Booker (D, NJ), Elizabeth Warren (D, MA), and Ron Wyden (D, OR) asked the Administration to reinstate the Biden Administration requirement that nursing homes disclose and submit comprehensive ownership information in an off-cycle revalidation process. Biden implemented federal regulations and research documenting poorer outcomes in nursing homes with private equity ownership: more deficiencies and increased rehospitalization and higher mortality among residents. The Trump Administration indefinitely suspended the requirement. See “CMS Indefinitely Suspends Off-Cycle Medicare Revalidatioin Process for Nursing Homes” (CMA Alert, Jan. 8, 2026).
June 25, 2026 – M. Lambert, T. Edelman