Illinois Gov. Signs Private Equity Restrictions Legislation

SPRINGFIELD, Illinois—Illinois Gov. JB Pritzker has signed state legislation establishing new guardrails around private equity ownership of intellectual and developmental disability (IDD) service providers.

The Private Equity Stakeholder Project (PESP) submitted testimony in support of the legislation and previously released “Private Equity in Intellectual and Developmental Disability Services,” a report documenting how private equity firms have increasingly acquired and consolidated providers serving people with intellectual and developmental disabilities.

The report highlighted multiple Illinois examples, including Broadstep Behavioral Health, a Bain Capital-owned provider whose Illinois license to operate group homes was revoked in 2024 following repeated violations of quality standards. Between 2021 and 2023, Illinois paid Broadstep more than $23.6 million for Community Integrated Living Arrangement (CILA) services.

PESP’s testimony in support of HB 4728 argued that private equity firms have increasingly set their sights on companies that provide a wide range of IDD services and supports, while large asset managers are quietly acquiring and consolidating what were previously small, independent firms. PESP also pointed to the industry’s limited transparency and regulation, as well as financial practices that can unnecessarily load healthcare providers with debt and potentially leave them more vulnerable to market conditions and with fewer resources to support operations. 

“Given the industry’s track record in the state, HB4728 was a timely opportunity for Illinois to rein in the growth of private equity buyouts in IDD services,” said Chris Noble, policy director at PESP. “Illinois is becoming a leading example for states seeking to protect their most vulnerable residents and patients. We hope other states follow Illinois’ lead by strengthening oversight over private equity ownership of IDD service providers.”