The Minnesota State Legislature has introduced Senate Bill 2972, aimed at increasing transparency and oversight in the ownership transfer of nursing homes and assisted living facilities to private equity companies. Introduced on March 24, 2025, the bill mandates that facilities provide a 120-day written notice to key state officials, including the attorney general and health commissioners, before any transfer of ownership occurs.

Key provisions of the bill require private equity firms to disclose detailed information about their corporate structure, ownership interests, and any affiliations with related entities. This includes a comprehensive account of the facility's condition, covering aspects such as heating issues, air quality, and recent renovations. The bill also stipulates that firms must submit an affidavit and evidence as part of the ownership transfer process.

The introduction of Senate Bill 2972 has sparked significant debate among lawmakers and stakeholders. Proponents argue that the bill is essential for protecting vulnerable residents in these facilities, ensuring that potential buyers are held accountable for their financial and operational practices. Critics, however, express concerns about the potential for increased regulatory burdens on private equity firms, which could deter investment in the sector.

The implications of this legislation could be far-reaching. By enhancing oversight, the bill aims to safeguard the quality of care provided to residents, addressing growing concerns about the impact of private equity ownership on nursing home operations. Experts suggest that if passed, the bill could set a precedent for similar regulations in other states, reflecting a broader trend toward increased scrutiny of private equity in healthcare.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and any amendments that may arise, as its final form could significantly influence the landscape of elder care in Minnesota.