Press Release: Pennsylvania Lawmakers Shift Focus in Proposed Hospital Merger Legislation
HARRISBURG — In response to strong opposition from the healthcare lobby, Democratic lawmakers in Pennsylvania have revised their approach to regulating hospital mergers and acquisitions. The new focus is on for-profit entities and private equity firms, leaving nonprofit hospitals largely exempt from heightened scrutiny.
Governor Josh Shapiro and other policymakers disclosed their support for a broader measure that would include Pennsylvania’s numerous nonprofit hospitals, which play a critical role in the state’s health system. However, they also recognized the political hurdles this comprehensive reform may encounter, particularly after past efforts faced roadblocks in the Republican-controlled Senate.
For years, legislators have sought to empower the state attorney general to vet hospital sales and mergers, given their significant impact on community health and access. Nearly 90% of hospital closures in Pennsylvania have been linked to such ownership changes. Last year, the House passed a measure requiring all hospitals to report major transactions, but it stalled in the Senate.
State Representative Lisa Borowski (D., Delaware) reintroduced a bill that now exclusively targets for-profit hospital operators, aiming to prevent predatory practices like sale-leaseback deals, which can burden hospitals with exorbitant rent after private equity ownership.
State Senator Tim Kearney (D., Delaware) echoed Borowski’s sentiments, attributing the narrowed scope to powerful lobbying from the Hospital and Healthsystem Association of Pennsylvania (HAP). HAP argues that regulatory burdens would escalate without resolving financial issues within struggling hospitals.
While Shapiro has signaled a commitment to address private equity’s influence, the ongoing debate underscores the complex dynamics of healthcare politics in Pennsylvania, raising questions about the future of hospital ownership and patient care in the state.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
