Massachusetts Gov. Maura Healey’s office is making positive noises about recently passed legislation to rein in the role of private equity in health care.
Healey did not say specifically whether he plans to sign the legislation, but noted that it was among “a number of things that were done in an incredibly productive session.” The State News Service reported.
The Democratic governor mentioned the bill, which would close loopholes in state law exposed by the collapse of Steward Health Care last year, during an unrelated event Wednesday, the wire service reported.
Lawmakers sent Healey more than 100 bills in a last-minute flurry Tuesday as they closed the books on last year’s legislative session and prepared for the new session that began Wednesday.
Legislative leaders praised the bill, the result of months of closed-door negotiations between the House and Senate, saying it makes “significant changes to the way our state tracks medical and hospital providers in Massachusetts.”
The bill, among other things, would increase reporting requirements for hospitals and registered provider organizations and give the state Attorney General’s Office additional authority to monitor health care trends and enforce the False Claims Actthe lawmakers said in a statement.
“As we look at a healthcare system plagued by high costs and the consequences of private capital mismanagement, we are doubling down on our responsibility to our residents by safeguarding patients, expanding access to care and holding private capital accountable” , said the state president of the Senate. Rep. Karen E. Spilka, D-Middlesex/Norfolk, said.
Dallas-based Steward filed for bankruptcy in early 2024, plunging the state’s healthcare infrastructure into chaos. The company finally closed three hospitals and sold its remaining properties, along with its network of doctors.
Meanwhile, federal lawmakers have raised concerns about the private equity ties of the company that took over Steward’s physician network.
State Rep. Frank Moran, a Merrimack Valley Democrat who represents communities affected by Steward’s collapse, said the bill “will transform health care in the Commonwealth, better protect patient care and enact the necessary protections to ensure that another Steward Health Care situation is never allowed to happen again in our state.”
The bill would also increase penalties for hospitals that fail to comply with data reporting requirements, require lessors to notify the state 60 days before repossessing medical equipment, overhaul the way regulators manage care costs and assess resources and would block the Department of Public Health from issuing a license to establish or maintain acute care hospitals whose main campuses are leased to a real estate investment trust, according to a analysis by the State House News Service.
“The crisis and long-term impacts on the health care system that Steward Health Care caused through greed and financial negligence have led to important reforms in this legislation that will strengthen oversight of the Commonwealth’s health care system, helping prevent future crises and ensure Massachusetts residents have access to high-quality care,” said state Rep. Hannah Kane, R-11th Worcester, the bill’s House negotiator.