The Corporate Crimes Against Health Care Act of 2024 aims to address a rise in private equity control of health facilities, including hospitals and ASCs, according to a June 26 blog post from Coronis Health.
Private equity fund assets in healthcare hit $8.2 trillion in 2023, according to Sens. Warren and Markey.
Additionally, the senators assert that lax corporate transparency and accountability laws have allowed private equity firms to undermine the long-term stability of nursing homes, physician practices, hospitals and health systems.
If signed, the legislation would accomplish six key goals according to the blog post:
1. The bill would place criminal penalties on executives who “loot” healthcare organizations and result in patient deaths.
2. The Justice Department and state attorneys general could recover all compensation from private equity and portfolio company executives, including salaries, over a 10-year period before or after a healthcare firm they have acquired experiences avoidable financial issues.
3. A penalty of up to five times the recovered amount under the act could be authorized.
4. Federal health program payments to entities that sell assets or use them as real estate investment trust loan collateral could be banned, apart from existing arrangements.
5. Healthcare providers who receive federal funding would be required to publicly report mergers, acquisitions, financial data and changes in control and ownership.
6. Healthcare organizations would be required to report to Congress on information detailing the harms of corporatization within the healthcare space.
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