Democratic lawmakers have narrowed the scope of a proposed crackdown on hospital M&As, focusing it on private equity and excluding nonprofit operators from additional oversight after pushback from the industry's powerful lobby.
Pennsylvania officials are rallying together to ensure that private companies like California-based parent company Prospect Medical Holdings cannot devastate another hospital or community like it did with Crozer. Gov. Josh Shapiro demanded that a pair of bills safeguarding Pennsylvania's hospitals against unchecked corporations make it to his desk this legislative session.
The closing of Crozer Health has highlighted a disturbing statewide trend of healthcare system acquisitions. At least 26 hospitals owned by nonprofits and for-profits have closed in Pennsylvania in the past five years, and 46 have changed owners.
CLEVELAND, Texas – A hospital in Cleveland has closed its doors. Texas Emergency Hospital put a sign on its door Monday. There is not a lot of information about the closure, but former employees say they are distraught about the closure. The hospital told employees the closure was due to rising operational costs and changes in reimbursement from payers and the unexpected decrease in the hospitals Medicaid interim rate.
Gov. Josh Shapiro highlighted a single type of owner for scrutiny — private equity, which he said "has infected our health care system" and treats Pennsylvania hospitals like "a piggy bank they can empty out and smash on the floor." A private equity-only approach would create a carve-out for the state's numerous and powerful nonprofit health systems, including UPMC, the state's largest private employer. These systems are represented by a powerful lobby that publicly opposed a proposal last session.
A CBS News analysis of IRS data found some nonprofit hospitals in Philadelphia and across the country attempt to collect hundreds of millions of dollars a year from low-income patients. All the big hospitals in the Philadelphia area are nonprofit, and that means they receive federal, state and local tax breaks. In exchange, nonprofit hospitals are required to provide free or discounted care to those who can't afford to pay. However, our investigation found the law is vague, and some patients may be falling through the cracks.