Pennsylvania House Approves Bill to Increase oversight of Hospital Mergers
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The legislation aims to grant the Attorney General more power to review and possibly block hospital deals,especially those involving private equity firms.
The Pennsylvania House of Representatives has passed a bill designed to increase scrutiny of hospital mergers and acquisitions within the state.
House bill 1460, if enacted, would empower the Pennsylvania Office of Attorney General to review proposed hospital transactions and potentially block those deemed to threaten patient access or public health.
The bill also seeks to prohibit healthcare sale-leaseback arrangements involving private equity firms. It would mandate that healthcare organizations disclose detailed financial and operational information before finalizing notable deals.
The legislation was initially introduced on May 13, shortly after Prospect Medical Holdings, a Los Angeles-based private equity firm, decided to close Crozer health in Upland, pa.
State Rep. Carol Kazeem,the bill’s sponsor,stated in a June 11 news release that the “abrupt closure of Crozer Health System’s two remaining hospitals has made Delaware County a health care desert,resulting in hundreds of thousands of our residents without access to local medical care and negatively impacting our economy by leaving thousands of people without jobs.”
“Since there’s been no law on the books to oversee private equity firms’ purchase of our hospitals and nursing homes, they’ve been allowed to repeatedly gut them and walk away with the profit,” she added.
A similar bill passed the House last year but did not receive a vote in the Pennsylvania senate.Companion legislation is currently under consideration by the Senate.
What the Bill Means for Pennsylvania Healthcare
House bill 1460 represents a significant step toward regulating hospital transactions and ensuring the stability of healthcare services across Pennsylvania. The bill addresses concerns about private equity involvement in healthcare and aims to protect patient access to quality care.
“Since there’s been no law on the books to oversee private equity firms’ purchase of our hospitals and nursing homes, they’ve been allowed to repeatedly gut them and walk away with the profit.”
understanding Hospital Oversight in Pennsylvania
