S. 2989

119th CONGRESS 1st Session

To prohibit certain sales or leases of real property for a health care entity if the terms of such a sale or lease would lead to long-term weakened financial status of the health care entity or place the public health at risk, and for other purposes.

IN THE SENATE OF THE UNITED STATES · October 8, 2025 · Sponsor: Mr. Markey · Committee: Committee on Finance

Table of contents

• S. 2989
  • SEC. 1. Short title
  • SEC. 2. Limitation on the use of real estate investment trusts in health care
  • SEC. 3. Treatment of rents from qualified health care property

SEC. 1. Short title

• This Act may be cited as the or the .

SEC. 2. Limitation on the use of real estate investment trusts in health care

• (a) In general
  • In general
  • (1) Prohibition
    • No health care entity or covered firm may enter into agreement to sell to, or lease from, a real estate investment trust (as defined in of the Internal Revenue Code of 1986) an interest in real property if the terms of such sale or lease would lead to long-term weakened financial status of the health care entity or place the public health at risk. section 856
    • Prohibition
  • (2) Review of sale or lease terms
    • (A) In general
      • The Secretary of Health and Human Services (referred to in this section as the ) shall require each health care entity, or the covered firm that owns such health care entity, seeking to enter into an agreement described in paragraph (1) to submit to the Secretary for review the terms of the sale or lease, as applicable.
    • (B) Standard
      • In conducting a review of a sale or lease under subparagraph (A), the Secretary shall determine whether the terms of such sale or lease would lead to long-term weakened financial status of the health care entity or place the public health at risk.
    • (C) Consultation
      • The Secretary may consult with the relevant State attorney general in conducting a review under subparagraph (A).
  • (3) Litigation authority
    • Except as provided in section 518 of title 28, United States Code (relating to litigation before the Supreme Court), attorneys designated by the Secretary may appear for the Department of Health and Human Services and represent the Department in any civil action brought in connection with a violation of paragraph (1).
• (b) Enforcement
  • (1) State enforcement
    • (A) State authority
      • Each State may require a person subject to the requirements of this section to satisfy such requirements applicable to the person.
    • (B) Failure to implement requirements
      • In the case of a State that fails to substantially enforce the requirements of this section with respect to applicable persons in the State, the Secretary shall enforce the requirements of this section under paragraph (2) to the extent that such requirements relate to actions prohibited under this section occurring in such State.
  • (2) Secretarial enforcement authority
    • If a person is found by the Secretary to be in violation of this section, the Secretary may apply a civil monetary penalty with respect to such person in an amount not to exceed $10,000 per violation.
  • (3) Continued applicability of State law
    • This section shall not be construed to supersede any provision of State law that establishes, implements, or continues in effect any requirement or prohibition except to the extent that such requirement or prohibition prevents the application of a requirement or prohibition of this section.
• (c) Definitions
  • In this section:
    • The term affiliate means—
    • The term corporation means—
    • The term covered firm means a for-profit corporation that owns or is an affiliate of a health care entity.
    • The term health care entity means an entity that consists of 1 or more of the following health care providers:

SEC. 3. Treatment of rents from qualified health care property

• (a) In general
  • of the Internal Revenue Code of 1986 is amended by striking at the end of subparagraph (B), by striking the period and inserting at the end of subparagraph (C), and by adding at the end the following new subparagraph: Section 856(d)(2)
    • notwithstanding paragraphs (4), (6), and (8), any amount received or accrued directly or indirectly from qualified health care property (as defined in subsection (e)(6)(D)(i)).
• (b) Conforming amendments
  • of the Internal Revenue Code of 1986 is amended— Section 856(d)(8)(B)
    • by striking , and
    • by striking .
  • Section 856(d)(9) of such Code is amended—
    • by striking in subparagraph (A),
    • by striking each place it appears in subparagraph (A) and (B), and
    • by striking in subparagraph (A).
• (c) Effective date
  • The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.