New Connecticut private equity law bans hospital sale-leasebacks

Fierce Healthcare – Monday, June 1, 2026
By Dave Muoio

A newly enacted state law places an explicit, first-in-the-nation block on hospital sale-leasebacks—a tactic critics and legislators describe as a key vehicle for private equity funds to extract funds and bankrupt the health systems they controlled.

On May 27, Connecticut Governor Ned Lamont signed into law a bill with several new restrictions on private equity’s influence on hospitals and healthcare providers.

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