Corporate Crimes Against Health Care Act
Senate Bill Would Jail Corporate Executives Up to 6 Years for Patient Deaths at Facilities They Own
Legislative Progress
Key Points
- This bill creates new criminal and financial penalties for corporate owners and private equity firms that manage healthcare facilities. If their business decisions lead to a patient being injured or dying, those executives could face between one and six years in prison.
- The government would have the power to take back money from executives, including salaries, bonuses, and fees, for up to 10 years. This 'clawback' would happen if the healthcare company goes bankrupt, closes down, or fails to pay its workers for more than 90 days.
- To prevent companies from selling off hospital buildings for quick cash, the bill bans healthcare providers from selling their property to real estate investment groups if they want to keep receiving Medicare or Medicaid payments. It also removes several tax breaks these investment groups currently enjoy.
- Hospitals and large health systems would be required to report detailed information to the government every year. This includes who owns them, how much debt they have, and how much they are paying out to investors. This information would be made available to the public on a website.
- The goal is to stop profit-driven practices that can hurt patient care. By making owners personally liable for the health of patients and the financial stability of the facility, the bill aims to ensure that money is not prioritized over medicine.
Impact Analysis
Personal Impact
Life & Work
REIT investors who own shares of healthcare-focused real estate investment trusts could see the value of those investments decline. The bill eliminates the special tax rule for taxable REIT subsidiaries with interests in healthcare property and removes the 20% pass-through deduction for qualified REIT dividends, making healthcare REIT investments less tax-advantaged for all shareholders, including individual homeowners who may hold these in retirement accounts.
Programs
Disabilities
Activities
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articles
Warren Renews Bill to Rein in Private Equity in Health Care
Senator Elizabeth Warren reintroduced the Corporate Crimes Against Health Care Act, which proposes prison sentences of one to six years for executives whose financial decisions lead to patient harm or death. The bill also includes 10-year compensation clawback provisions for bankrupt entities.
Bill Suggests Prison Time For Corporate Greed Crimes In Health Care
Senators Elizabeth Warren and Ed Markey introduced legislation that would result in prison time for health care executives accused of 'corporate greed' that endangers patient safety. The bill follows the high-profile bankruptcy of Steward Health Care.
Warren seeks consequences for 'corporate crimes' in health care
Senator Elizabeth Warren announced the Corporate Crimes Against Health Care Act outside a hospital facing bankruptcy. The bill targets private equity firms, allowing for prison time if 'looting' leads to patient death and empowering the DOJ to claw back executive pay for up to 10 years.
Source Information
Document Type
Congressional Bill
Official Title
Corporate Crimes Against Health Care Act
Data Sources
Sponsor
Cosponsors
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