After hospital chains collapse, states target private equity’s role in health care

Pluribus News – Monday, June 8, 2026
By Stephanie Akin

States are challenging private equity’s role in healthcare, passing new oversight measures to prevent the corporate bankruptcies currently destabilizing national hospital chains.

In recent weeks, Illinois legislators passed two private equity health care bills, the Vermont Legislature passed a bill, and Connecticut Gov. Ned Lamont signed a bill.

At least five other states — California, Maine, Massachusetts, Oregon and Washington — have enacted similar laws within the past year, spurred by a wave of high-profile collapses of private equity-backed entities that have left communities grappling with sudden hospital closures, massive layoffs and vendor supply shortages.

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