AN ACT PROHIBITING REAL ESTATE INVESTMENT TRUSTS FROM ACQUIRING OR INCREASING OPERATIONAL CONTROL OVER HOSPITALS OR HEALTH SYSTEMS AND PROHIBITING HOSPITALS AND HEALTH SYSTEMS FROM ENTERING INTO SALE-LEASEBACK FINANCING TRANSACTIONS.

HB 5316 prohibits real estate investment trusts (REITs) from acquiring or increasing operational control over hospitals or health systems, and bans hospitals/health systems from entering into sale-leaseback transactions involving their main hospital campus property. "Operational control" is defined as influencing daily operations or appointing key leadership, while a "sale-leaseback" involves selling and leasing back the main campus. The law takes effect October 1, 2026, directly affecting REITs and hospitals/health systems that might engage in these transactions. It targets specific real estate financing practices without altering hospital ownership or care standards.