Senator Baldwin Introduces Bill to Rein in Private Equity in Health Care
WISCONSIN – U.S. Senator Tammy Baldwin (D-WI) and her colleagues introduced the Health Over Wealth Act, legislation that would require greater transparency for private equity firms and for-profit companies that own health care entities, including hospitals, nursing homes, and mental or behavioral health facilities. The legislation would put safeguards in place to protect workers, patients, and health care quality, access, and safety; create stronger accountability measures for corporate greed; and close tax loopholes that benefit real estate investment trusts making money off health care property.
“Wisconsin families deserve access to affordable, quality health care. But right now, private equity firms use the health care system Wisconsinites rely on as just another way to make a quick buck, prioritizing profits over people – leading to worse care for patients and worse treatment of health care workers,” said Senator Baldwin. “Our bill will protect patients and workers, hold private equity firms accountable, and close tax loopholes that benefit the wealthy – ensuring families and communities can get the care they deserve.”
Specifically, the Health Over Wealth Act would:
- Require that private equity-owned health care facilities publicly report on their debt and executive pay, lobbying and political spending, health care costs for patients and insurance plans, and any reductions in services, wages, or benefits.
- Require that private equity-owned firms set up escrow accounts to cover five years of expenses to ensure continuation of care in the event of a hospital closure or service reduction.
- Authorize the Department of Health and Human Services to revoke investment licenses from private equity firms that price gauge, understaff, or create access barriers to care.
- Establish a task force to review the role of private equity and consolidation in health care, including how market trends create or exacerbate health care disparities.
- Prohibit private equity firms from stripping assets from health care entities or undermining the quality, safety, or access to health care.
- Close tax loopholes for real estate investors in order to disincentivize health care entities from selling their property and then paying exorbitant rents to these investors.
The Health Over Wealth Act is led by Senator Edward Markey (D-MA) and also sponsored by Senators Peter Welch (D-VT), Jeff Merkley (D-OT), Elizabeth Warren (D-MA), Bernie Sanders (I-VT), Cory Booker (D-NJ), Tina Smith (D-MN), and Richard Blumenthal (D-CT).
The legislation is endorsed by American Federation of State, County and Municipal Employees (AFSCME), American Federation of Teachers (AFT), Americans for Financial Reform, Committee of Interns and Residents (CIR-SEIU), Community Catalyst, Massachusetts Nurses Association, National Nurses United (NNU), Moral Injury of Healthcare, Private Equity Stakeholder Project, Public Citizen, and United Steelworkers (USW).
A one-pager on this bill is available here.
Full text of this legislation is available here.
###
