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June 13, 2024
Proposed legislation hopes to remove healthcare 'corporate greed': 7 things to know
Becker's Hospital Review
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Summary
Massachusetts Senators Elizabeth Warren and Ed Markey have introduced the Corporate Crimes Against Health Care Act of 2024 to combat what they describe as "corporate greed and private equity abuse" in the healthcare sector. The proposed legislation aims to hold private equity executives criminally and financially accountable for actions that harm healthcare organizations, such as hospitals and nursing homes, and result in patient deaths. Key provisions include criminal penalties of up to six years in prison, a clawback of compensation from executives up to ten years before or after financial woes, substantial civil penalties, and additional reporting requirements for healthcare providers receiving federal funding. The act also seeks to limit federal health program payments and repeal certain tax benefits for Real Estate Investment Trusts (REITs). The legislation responds to notable cases like the bankruptcy of Steward Health Care, aiming to prevent similar corporate mismanagement in the future.
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