Connecticut lawmakers are pushing private equity reform in health care for the third consecutive year, with a bill that would ban majority private equity ownership of hospital main campuses and block sale-leaseback deals.
The push comes following the collapse of Prospect Medical Holdings, a California-based private equity-backed hospital operator that owned three Connecticut hospitals before filing for bankruptcy in January 2025.
The company’s demise left the fate of those hospitals uncertain for months before new buyers were secured.
