Following the widely reported failures of Steward-owned hospitals in Massachusetts and subsequent bankruptcy and state intervention, it is not surprising that Massachusetts passed legislation to regulate healthcare Real Estate Investment Trusts (REITs). At Washington Analysis, a CFRA business, we are tracking state laws that we believe are likely to gain momentum in 2026 and beyond. We theorize that HC REIT legislation adoption will follow similar pathways that state legislatures implemented to address to increase insight into pharmacy benefit manager (PBMs) and prohibit Surprise Medical Bills.
As state legislatures ramp up oversight of hospital and nursing home ownership, major healthcare REITs face intensifying regulatory risk. This exclusive Washington Analysis report outlines the legislation gaining traction across 20+ states and assesses the potential impact on key players, including CareTrust, Medical Properties Trust, Omega Healthcare, Sabra Health, and Welltower.
What You'll Learn
- Which states are advancing legislation targeting HC REIT ownership
- Why Connecticut’s 2026 outlook poses the greatest threat
- Implications for mergers, acquisitions, and disclosure rules
- Lessons from the pharmacy benefit manager and surprise billing regulatory playbooks
- Companies most exposed to upcoming oversight
Stay ahead of state legislative risks impacting healthcare REITs in 2026.
Authors of this piece:
Laura Hobbs, SVP-Healthcare
Ryan Visnovec, Senior Research Associate
