State Bills Would Limit For-Profits’ Control of Healthcare Systems

By

The entrance to Delaware County Memorial Hospital.
Image via Crozer Health.

A state bill announced Thursday at a press conference in Media by Delaware County elected officials would limit for-profit companies in their ownership and management of hospitals in Pennsylvania, writes Kenny Cooper for WHYY.

It is a response to a decision by the for-profit firm Prospect Medical Holdings to close and reduce hospital and medical services at the four-hospital Crozer Health medical system in Delaware County, which it owns.

 “We’re here to send a clear message to predatory private equity firms and Wall Street looters, that their days of raiding our hospitals and nursing homes of their assets and then abandoning them to bankruptcy are numbered,” said State Sen. Tim Kearney.

The proposed legislation requires a 24-hour moratorium on the transfer of hospital ownership when one of the parties is a for-profit. Any change in ownership would have to be approved by the attorney general.

It also bans health care companies from separating hospitals from its real estate.

The legislation would prevent private-equity firms from making acquisitions while extracting dividends from recently-acquired health care companies.

Health system employees would have to receive a 90-day notice before mass layoffs and receive a minimum severance package.

Find out more details about the proposed legislation at WHYY.

Join Our Community

Never miss a Delaware County story!

"*" indicates required fields

Hidden
DT Yes
This field is for validation purposes and should be left unchanged.
Advertisement