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Congress·In Committee

Congress Proposes Prison Time and Pay Clawbacks for Healthcare Owners Who Harm Patients

Corporate Crimes Against Health Care Act

22 days ago·View on Congress.gov

Legislative Progress

✓ Filed
Review
House
Senate
President

Key Points

  • This bill creates new criminal penalties for owners and executives of healthcare companies. If their business decisions lead to a patient being injured or dying, those responsible could face between 1 and 6 years in prison. It aims to stop companies from putting profits so far ahead of safety that people get hurt.
  • The government would have the power to take back money paid to executives and investors over the last 10 years if the healthcare company goes bankrupt, closes down, or stops paying its workers. This is designed to prevent owners from draining a hospital's cash for personal gain and then leaving the facility to fail.
  • The plan would block federal payments, like Medicare, to any healthcare facility that sells its land or buildings to a real estate investment trust. This is meant to stop deals where a hospital sells its property to get quick cash but then struggles to pay expensive rent to the new corporate landlord.
  • Starting in 2027, hospitals and large medical groups would have to report exactly who owns them and how much debt they have. This information would be posted on a public website so patients and the government can see if a healthcare provider is being weighed down by risky loans or complicated corporate structures.
  • The bill removes several tax breaks for real estate investors who profit from healthcare properties. Additionally, companies that fail to report their ownership or provide false information could be fined up to $5 million. These steps are designed to make it less profitable to treat healthcare like a high-risk financial game.
HealthcareEconomy FinanceTaxes

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Feb 12, 2026House

Referred to the Committee on Ways and Means, and in addition to the Committees on the Judiciary, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Feb 12, 2026

Introduced in House

Related News

3 articles
Bloomberg Law·23 days ago

Warren Renews Bill to Rein in Private Equity in Health Care

Sen. Elizabeth Warren reintroduced the Corporate Crimes Against Health Care Act, which proposes 1-6 years in prison for executives whose financial decisions lead to patient harm. The bill also allows for a 10-year clawback of compensation if a healthcare firm fails or goes bankrupt.

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Politico·15 days ago

Merkley joins senators to propose Corporate Crimes Against Health Care Act

Senators reintroduced legislation to crack down on private equity 'looting' in healthcare. The bill would create criminal penalties for executives and block Medicare payments to facilities that sell their land to real estate investment trusts (REITs) to prevent cash-draining deals.

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KFF Health News·23 days ago

Wednesday, February 11, 2026 - Morning Briefing

A new bill aims to hold healthcare executives criminally liable for patient safety failures linked to profit-driven management. The plan includes stripping tax breaks for REITs and allowing the government to claw back executive pay from the last decade if a company stops paying its workers.

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Source Information

Document Type

Congressional Bill

Official Title

Corporate Crimes Against Health Care Act

Bill NumberHR 7537
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on Ways and Means, and in addition to the Committees on the Judiciary, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

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Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.