Senators Elizabeth Warren (D-MA) and Edward Markey (D-MA) introduced the Corporate Crimes Against Health Care Act of 2024 to, according to Senator Warren’s press release, “root out corporate greed and private equity abuse in the health care system.” Both senators have been vocal with their concerns about private equity in health care and the need for more transparency and accountability across U.S. health care systems.

The bill, S. 4503, would introduce a new criminal penalty for executives of health care entities, including nursing homes and hospitals, found guilty of a “triggering event” that results in the death or injury of a patient or patients. Under the bill, a triggering event would include bankruptcy, closure, inability to pay staff over a certain timeframe, and loan defaults, among other situations.

State attorneys general and the Department of Justice (DOJ) would be empowered under the bill to recover compensation from executives of private equity and portfolio companies. In addition, the legislation would ban federal health program payments to entities that sell assets to a REIT and use assets as loan collateral made to a REIT. The bill would also mandate reporting requirements for federally funded health care providers.

Health care providers receiving federal funding would also have to publicly disclose merger, acquisitions, changes in ownership and control, and financial data, including debt and debt-to-earnings ratios. The bill would also require the HHS Office of Inspector General (OIG) to submit a report to Congress on the impacts of corporatization on health care. A one-pager and more information on the legislation can be found here. LeadingAge supports provider transparency and continues to assess this bill and an article will be posted to our website soon.

This bill follows on the heels of Markey’s discussion draft released for comment, Health over Wealth. The Health over Wealth Act focused on requiring greater transparency in health care entity ownership; putting safeguards in place to protect workers and preserving access to health care; and elevating the voices of workers and communities in regulating health care and monitoring hospital closures and service reductions. Markey held a HELP Subcommittee hearing on April 3 titled, “When Health Care Becomes Wealth Care: How Corporate Greed Puts Patient Care and Health Workers at Risk.”

LeadingAge has not been silent on transparency and accountability in health care and has supported the Center for Medicare and Medicaid (CMS) rulemaking. CMS published the skilled nursing facilities (SNF) ownership and transparency rule that expanded reporting requirements (beyond medical director) to include disclosure of REIT/Private Equity status and a new list of “other controlling individuals.” The SNF Ownership Final Rule can be found here;  in a November 2023 press statement, LeadingAge president and CEO Katie Smith Sloan commented: “The final rule, which we support, will facilitate further research and analysis of how and to what extent ownership types affect and correlate with outcomes and the quality of care provided to nursing home residents. CMS has committed in the final rule to providing further guidance and examples concerning the scope of data that must be submitted, as well as how the information submitted by providers will be published. We will work closely with the agency on these important issues as it moves toward implementation of the requirements.”

LeadingAge will continue to analyze the Corporate Crimes Against Health Care Act of 2024 and monitor the progress in Congress.