Faver Dias Legislation Offering Protections Against Equity Looting for Disability Care Providers Heads to Governor’s Desk

SPRINGFIELD, Ill. – Wanting to provide protections for individuals with disabilities against financial mismanagement, state Rep. Laura Faver Dias led passage of legislation establishing guardrails for private equity firms operating in the disability care sector. 

“When we’re talking about the well-being and care of other human beings, we must always prioritize the quality of care they’re receiving,” said Faver Dias. “With this legislation, we’re one step closer to making that a certainty, where care is more important than profits.”

Faver Dias’s House Bill 4728 would require equity firms operating in the disability care sector to provide information to the Health Facilities and Services Review Board about their running operations on a quarterly basis. They will also have to notify the board if they plan to participate in any transaction that may put the care center at financial risk. 

First of its kind, the legislation also includes “anti-looting” regulations. It will require firms that own disability service agencies to certify that they are not purposefully destroying an agency to receive as much money as possible from it. With these regulations in place, it creates a stronger system for the state to ensure that the programs are being run fairly and with care as a first priority, not profits. 

“We’re not only going to be protecting vulnerable communities in our state,” said Faver Dias. “We’re also creating a system that puts the needs of workers back into the conversation, ensuring they have access to a fair work environment.”

The legislation received bipartisan support, and it now heads to the governor’s desk for final approval.