SPRINGFIELD – State Senator Javier Loera Cervantes spearheaded a new law that will address growing concerns regarding health care and disability service agencies being owned by private equity asset management companies.
“Our disability service systems must be accountable to the people they serve,” said Cervantes (D-Chicago). “With more transparent information about agencies’ ownership, lawmakers and regulators will be in a stronger position to ensure our most vulnerable residents are protected from losing the services they need and can continue to lead fulfilling lives.”
In 2024, an asset management company owned a community-integrated living arrangement and tried to expand it too quickly, leading to a deteriorated quality of care for the facility’s patients. Eventually, the state had to step in to close the facility due to a lack of improvement in care quality. The facility’s closure not only disrupted residents’ care, but it also affected families, uprooted workers and stretched state resources.
In response, Cervantes led a new law to safeguard health care and human services from disruptions in care due to concerns surrounding private equity ownership. The law will require 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. This will allow the board to have more information on the intentions of the agency owner. The law will apply to community living facilities, intellectual developmental disability facilities and child care institutions, as well as other similar services.
The law will also require the information about the agency owners to be published on the Health Facilities Planning Board’s website. The information will need to be provided by the organizations at their licensure or certification time, plus quarterly after that.
“Disability service agencies should have a goal of helping as many people as possible – not to make as much profit as possible,” said Cervantes. “We need to have safeguards in place so people who rely on these services are not in danger of losing their assistance simply for the purpose of making a profit.”
House Bill 4728 was signed into law Thursday and takes effect July 1, 2027.
