New Penalties and Profit Clawbacks for Corporate Misconduct in Healthcare
This law establishes criminal and civil penalties for private equity firms and corporate leaders whose financial actions contribute to patient harm or the failure of healthcare facilities, such as bankruptcy. It grants the government authority to claw back excessive profits and fees, dedicating those recovered funds to support affected employees and local healthcare needs. Citizens will gain greater transparency regarding who controls their local hospitals and clinics.
Key points
Imposes criminal liability (up to 6 years imprisonment) and civil penalties on corporate owners if their financial practices result in patient injury or the collapse of a healthcare facility.
Allows the Attorney General to recover (claw back) compensation, fees, and profits taken by corporate owners up to 10 years before or after a crisis event (e.g., bankruptcy or mass salary defaults).
Mandates public reporting of detailed financial data and ownership structures by hospitals and other healthcare entities, increasing transparency for citizens.
Eliminates certain tax benefits for Real Estate Investment Trusts (REITs) involved in healthcare property ownership, aiming to discourage speculative transactions.
Expired
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