SPRINGFIELD – State Senator Javier Loera Cervantes is leading a measure to address growing concerns surrounding private equity asset management ownership in health care and human services.
“We want our medical facilities to operate with transparency and accountability,” said Cervantes (D-Chicago). “This legislation would help protect our vulnerable Illinois residents by modernizing state oversight and accountability in our disability service systems.”
The legislation would require medical facilities to disclose to the Health Facilities Planning Board whether they are owned by an asset management company – a business whose purpose is to manage and invest clients’ funds – giving more information on the facility owner’s intentions. The measure would apply to community living facilities, intellectual developmental disability facilities and child care institutions, along with other similar types of services.
The measure would also require the Health Facilities Planning Board to publish the information about the facilities’ owners on its website. Facilities would have to provide the information at the time they apply for licensure or certification, as well as quarterly after that.
In 2024, an asset management company owned a community-integrated living arrangement but tried to expand it too quickly, leading to deteriorated care quality for the facility’s patients. Illinois eventually had to step in and close the facility because the quality of care was not getting better. The closure disrupted care for residents, impacted families, displaced workers and strained state resources.
“Families need to know that the agencies caring for their loved ones are focused on quality care – not just corporate profits,” said Cervantes. “This measure would update our state laws and regulations to reflect the growing role of these asset management companies and prevent future harm and disruptions.”
House Bill 4728 passed the Senate Thursday and heads back to the House for concurrence.
