July 30 :
H.E. Subcommittee on Primary Health and Retirement Security Chaired by Edward J. Markey and House Judiciary Subcommittee on Health, Employment, Labor, and Pensions member Pramila Jayapal, an Indian American, introduced the Health Over Wealth Act. Health care facilities, nursing homes, and mental or behavioral health institutions are all part of the healthcare industry, and this bill seeks to increase transparency for private equity firms and for-profit businesses that own these businesses.
Protecting healthcare providers, patients, and the public from harm is one of its stated goals. Aiming to eliminate tax havens enjoyed by REITs with holdings in healthcare assets, the measure incorporates more accountability mechanisms to counteract corporate avarice.
During a hearing before the HELP Subcommittee on Primary Health and Retirement Security, headed by Senator Markey, titled "When Health Care Becomes Wealth Care: How Corporate Greed Puts Patient Care and Health Workers at Risk," the bill's discussion draft was earlier released on April 3.
If health care systems are acquired by private equity firms, it will only mean inferior health results and higher bills for patients. Medical professionals have an ethical obligation to safeguard individuals from profit-driven companies that put profit before patient well-being, according to Jayapal.
Additionally, she expressed her pride in spearheading the Health Over Wealth Act with Senator Markey. This bill expands upon her Healthcare Ownership Transparency Act and aims to rein in health care private equity, boost transparency, seal loopholes, and guarantee that patients come first, above all else, in the pursuit of profit.
Hospitals and other medical centers controlled by private equity firms are required by the Health Over Wealth Act to report their total debt, executive compensation, political contributions and expenditures, patient and insurer expenses, and service cuts, wage freezes, and benefit cuts. Firms must also establish escrow accounts with sufficient funds to cover five years of expenses. This will guarantee that patients will continue to receive care even if hospitals close or reduce services.
The Act gives the HHS the authority to take away investment licenses from private equity companies if they violate regulations around pricing gouging, understaffing, or making it harder for people to get the treatment they need. It also forms a task team to investigate health care consolidation and private equity, with an eye on determining whether current market developments contribute to or worsen healthcare inequalities. Additionally, the Act forbade private equity firms from putting healthcare quality, safety, or accessibility at risk by seizing assets from healthcare organizations. In the end, it could eliminate tax breaks for property investors, which would discourage healthcare organizations from selling their properties and paying inflated rents to these individuals.
