Corporate Crimes Against Health Care Act
Sponsored By: Representative Rep. Goodlander, Maggie [D-NH-2]
Introduced
Summary
Preventing unjust enrichment by private equity and real estate investment trusts in health care. This bill would create new criminal and civil penalties, change tax rules for REIT-related health assets, require broad ownership and financial reporting to HHS, and direct an HHS Office of Inspector General study of profit-driven practices.
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- Families and patients would see more ownership transparency because reporters must publish data on an HHS website by January 1, 2028, and the bill restricts Federal health-care program payments tied to REIT asset sales or collateral arrangements.
- Hospitals, physician practices, ambulatory surgical centers and health systems would face annual mandatory reporting, with existing reporters due January 1, 2027 and new entities required to file within 60 days of formation; false or missing reports can trigger civil penalties up to $5,000,000 per report.
- Private equity firms, REITs, and other controlling investors would face a new criminal and civil framework with clawbacks for defined "triggering events," plus tax changes that repeal a special taxable REIT subsidiary rule and remove qualified REIT dividends from the 20% qualified business income deduction for taxable years after enactment.
- The HHS Inspector General must finish a comprehensive study within three years on practices like upcoding, inflated risk scores, executive pay tied to productivity, staff reductions, and effects on care quality, workforce well-being, and Federal programs.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 0 benefits, 3 costs, 2 mixed.
Higher taxes on REIT-related income
If enacted, qualified REIT dividends would no longer count as qualified business income for the 20% section 199A deduction. This change would apply to taxable years beginning after enactment. The bill would also repeal the special tax rule for taxable REIT subsidiaries that hold certain health-care property, effective for taxable years after enactment. Investors and pass-through owners who used REIT dividends for the deduction could pay more tax.
No federal health payments after REIT sales
If enacted, federal health-care program payments (for example, Medicare and Medicaid) would be barred to any provider that, on or after enactment, sells assets to or newly pledges assets to a REIT. There is an exception where the pledge agreement existed before enactment. This could reduce payments to some providers and affect provider finances.
Clawbacks for harmful healthcare deals
If enacted, the Attorney General could recover executive and investor compensation tied to certain triggering events at health-care firms. Covered pay (salary, bonuses, equity, fees, sale profits, severance and similar) could be clawed back for amounts paid within 10 years before or after a triggering event. Recovered money would go to a fund to cover employee salary and benefit shortfalls and local health needs, and states may bring related suits. Executives can raise an affirmative defense by clear and convincing evidence that they could not prevent the triggering event.
Annual ownership and finance reports
If enacted, many hospitals, physician practices, ambulatory surgical centers, freestanding emergency departments, and entities that own or control them would have to file annual ownership, control, financial, and operational reports with HHS. Existing covered entities would file initial reports by January 1, 2027; new entities must file within 60 days of formation. HHS would publish the information by January 1, 2028 and run annual audits. Failure to file or filing false information could bring civil penalties up to $5,000,000 per report.
Jail and big fines for execs
If enacted, covered people whose actions contributed to a triggering event that caused patient death or injury could face criminal prison time of 1 to 6 years. They could also face civil fines up to five times any clawback amount. Clawback authority may reach covered compensation obtained during the 10 years before or after the triggering event.
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Sponsors & CoSponsors
Sponsor
Rep. Goodlander, Maggie [D-NH-2]
NH • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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