Health Over Wealth Act

Key Points

• The bill creates new rules for for-profit companies and private equity firms owning hospitals, nursing homes, doctor practices, and other health providers. They must report detailed financial data including debt, fees, staffing, wages, and political spending, and much of it becomes public.
• Private equity firms would need a federal license to invest in or buy health care entities. HHS could deny or revoke licenses for price gouging, understaffing, or access barriers, and a revoked firm must sell off its health care investments.
• Hospitals must give at least 90 days notice before closing or cutting essential services, submit mitigation plans, and go through a public comment process. Violators can be barred from Medicare enrollment for up to three years.
• The bill limits sale-leaseback deals with real estate investment trusts that weaken hospital finances, and changes the tax code so REITs no longer get favorable treatment on rents from health care property.
• If a health care business goes bankrupt, pension withdrawal liability moves to first priority ahead of other claims, making it more likely workers get owed pension money before other creditors are paid.
• Firms controlled by private equity may be required to fund an escrow account covering at least five years of operating and capital expenses to protect against sudden closures and unpaid staff.