Despite the New York State Legislature’s second attempt at allowing private equity investment in health care entities, the recently adopted 2014-2015 budget did not include the proposed two-year pilot program that would have established up to five eligible for-profit corporations as owners or operators of hospitals. The program was meant to “assist in restructuring health care delivery systems by allowing for increased capital investment in health care facilities.”

Even though the proposal was dropped from the final bill, it is still possible that the Legislature will decide to reconsider the issue for a third time on a standalone basis in the remaining months of the legislative session, which ends in June of this year, or in other future legislative sessions.