Proposed Medicare Rule Would Extend Private Equity and Real Estate Investment Trust Disclosure Requirements to Clinics, Doctor Groups, and Equipment Suppliers

A proposed federal rule would require private equity companies and real estate investment trusts to disclose their ownership of clinics, physician group practices, and durable medical equipment suppliers to Medicare regulators, extending transparency obligations that currently apply only to skilled nursing facilities.

The proposal is part of the Calendar Year 2027 Home Health Prospective Payment System proposed rule published by the Centers for Medicare and Medicaid Services in July. CMS signaled its intent to revise Medicare enrollment forms, including those used by clinics and group practices, to require identification of private equity company and real estate investment trust owners. The comment period for the rule closed August 31.

Current ownership disclosure rules, finalized in 2023, apply primarily to nursing facilities. The new proposal would extend the same principle to a much broader range of Medicare-participating providers and suppliers.

CMS noted concerns about private equity ownership patterns in health care as part of its rationale for expanding the disclosure requirements.

If finalized, the change would allow CMS to track ownership patterns across a wider range of Medicare providers. The proposal would not directly restrict private equity or real estate investment trust ownership of health care businesses, but would require such ownership to be reported to regulators at the time of Medicare enrollment or when ownership changes.