SPRINGFIELD – Senator Graciela Guzmán’s bill to monitor private equity in our health care system has been signed into law.
“Health care exists to care for people, not maximize returns for investors,” said Guzmán (D-Chicago). “Where private equity firms see profit, we see patients, workers, and entire communities. When hospitals are treated like financial assets instead of public institutions, families pay the price through closed facilities, fewer services, and diminished access to care. This law brings greater transparency and accountability to decisions that can reshape the health and well-being of communities across Illinois.”
The law requires private equity-backed health care mergers and acquisitions to be reported to the Illinois Attorney General before they move forward, giving the state greater visibility into transactions that can affect patient access, competition, costs, and the long-term stability of hospitals and other health care providers. This legislation establishes greater transparency around private equity transactions in health care, laying the foundation for stronger oversight as Illinois continues examining the impact of corporate consolidation on patients, workers and communities.
Illinois has already seen the consequences of private equity ownership. According to the Private Equity Stakeholder Project, the closures of West Suburban Medical Center, Weiss Memorial Hospital and Westlake Hospital left entire communities with fewer places to receive care while investors extracted value from struggling hospitals.
Illinois is not alone. Nearly one in four for-profit hospitals in the United States is now owned by private equity. Across the country, researchers have linked private equity ownership to hospital closures, reduced services, staffing pressures and higher costs for patients, particularly in communities that already face barriers to care.
According to the Private Equity Hospital Tracker, 488 hospitals in the US are currently owned by private equity firms. Firms that are engaged in this practice include Chicago-based equity giants such as Apollo Global Management, Bain Capital, and Equity Group Investment. The results have been disastrous for underserved communities with safety net hospitals being stripped for profit.
“Hospitals are anchors in our communities. They are where babies are born, lives are saved, and community members are employed to provide quality care. Decisions that put those institutions at risk cannot happen behind closed doors.”
House Bill 5000 has passed both chambers and was signed into law on Friday.
