Connecticut lawmakers passed a slate of measures in four months in 2026 addressing critical health issues, including an overhaul of the state's hospital certificate of need process and new restrictions on private equity ownership of hospital campuses. The legislature approved a measure backed by Gov. Ned Lamont to disband the Office of Health Strategy, transfer approvals to the Department of Public Health, and change the certificate of need process to allow quicker reviews.

For years, lawmakers from both parties had agreed that the state's approval process for major hospital transactions needed revision, but efforts to amend the certificate of need process to make it less cumbersome for hospitals while preserving patient access had repeatedly failed. The Office of Health Strategy took 16 months to approve a deal allowing Yale New Haven Health system to purchase three Connecticut hospitals from Prospect Medical Holdings, a bankrupt hospital operator. That deal ultimately fell through, and the three hospitals deteriorated and declared bankruptcy.

"Policy is a process. The bills that we weren't able to pass in the past, we were working on a process to get enough collective wisdom across the House and the Senate and the governor's office to make this happen," Sen. Saud Anwar said.

The new measure removes the requirement for hospitals to apply for state approval before terminating a service and instead requires advance notice and a plan to maintain patient access. Some hospitals had closed services before seeking state permission and then applied for retroactive approval, making it difficult to reopen those units. Service closures have particularly affected rural parts of the state.

Cathryn Vaulman, a spokesperson for the governor, said, "The new process requires advanced notice to the state, allows for public input on the needs of the community, requires a plan for continued access to care and enables DPH to impose conditions on the termination to ensure access." State Rep. Tammy Nuccio questioned the direction of the changes. "Why would we make it easier for these hospitals to buy up and close rural hospitals?" she said.

After years of struggling to reach consensus on private equity investment reform in healthcare, lawmakers in 2026 passed private equity reform proposals from both Lamont and the legislature. Senate Bill 196 prevents private equity investors from owning a majority stake in the main campus operations of any hospital, prohibits their involvement in clinical decision making, and prevents hospitals from selling the buildings of their main campuses. The budget approved by lawmakers also includes Lamont's proposal to increase oversight of private equity investors through the certificate of need process.