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Representative Jayapal and Senator Markey Introduce Health Over Wealth Act. Congresswoman Pramila Jayapal (WA-07), a member of the House Judiciary Subcommittee on Health, Employment, Labor, and Pensions, and Senator Edward J. Markey (D-Mass.), Chair of the Health, Education, Labor, and Pensions (HELP) Subcommittee on Primary Health and Retirement Security, have introduced the Health Over Wealth Act. This legislation is designed to bring greater transparency to private equity firms and for-profit companies that own healthcare entities, such as hospitals, nursing homes, and mental or behavioral health facilities. The act seeks to protect workers, patients, and the quality of healthcare, while imposing accountability measures to counter corporate greed and close tax loopholes that benefit real estate investment trusts profiting from healthcare properties.
Building on Previous Legislation
The Health Over Wealth Act builds on Congresswoman Jayapal’s Healthcare Ownership Transparency Act. “Private equity firms buying up healthcare systems are simply bad news for patients, leading to worse health outcomes and higher bills,” said Congresswoman Jayapal. “We have a duty to protect patients from greedy corporations that prioritize their bottom line over patient care.”
Senator Markey added, “Private equity firms and greedy corporate executives are using the healthcare system as a piggybank. But putting profit over patients results in substandard care, while health workers suffer, and communities are left to clean up the mess.”
Strengthened Protections for Patients and Workers
Since the initial draft of the bill was announced, Senator Markey has enhanced the legislation with additional protections for patients and workers. The bill now requires disclosure of agreements with union-busting organizations and includes stronger penalties for violations. It also bans health investors from actions that would strip assets from healthcare entities or undermine the quality, safety, and access to care. Additionally, the act includes provisions to prioritize workers in bankruptcy payouts and requires courts to consider the impact on healthcare access and provider employment in bankruptcy decisions.
Key Provisions of the Health Over Wealth Act
The Health Over Wealth Act contains several crucial provisions aimed at increasing transparency and safeguarding healthcare:
- Transparency Requirements: Private equity-owned healthcare facilities must publicly report on their debt, executive pay, lobbying, political spending, healthcare costs for patients, and any reductions in services, wages, or benefits.
- Escrow Accounts: Private equity-owned firms must establish escrow accounts to cover five years of expenses to ensure continued care in the event of a hospital closure or service reduction.
- Revoking Licenses: The Department of Health and Human Services (HHS) is authorized to revoke investment licenses from private equity firms that engage in price gouging, understaffing, or creating access barriers to care.
- Task Force Creation: A task force will be established to review the role of private equity and consolidation in healthcare, including how these market trends create or exacerbate healthcare disparities.
- Prohibition on Asset Stripping: The act prohibits private equity firms from stripping assets from healthcare entities or undermining the quality, safety, or access to care.
- Closing Tax Loopholes: The act closes tax loopholes for real estate investors, disincentivizing healthcare entities from selling their property and then paying exorbitant rents to these investors.
Support from Lawmakers and Organizations
The Health Over Wealth Act is co-sponsored by several senators and representatives, including Senators Tammy Baldwin (D-Wisc.), Peter Welch (D-Vt.), Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), Cory Booker (D-N.J.), Tina Smith (D-Minn.), Richard Blumenthal (D-Conn.), and Representatives Becca Balint (VT), Val Hoyle (OR-04), Eleanor Holmes Norton (DC), and Mark Pocan (WI-02).
The legislation has garnered support from a wide range of organizations, including the 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).
Voices from the Frontlines
Healthcare professionals and union leaders have voiced strong support for the Health Over Wealth Act. Nancy Hagans, RN, President of National Nurses United, stated, “As nurses, we see firsthand how our profit-driven healthcare system endangers patients and healthcare workers. Health care should not be run like a business; it should be provided as a human right.”
Randi Weingarten, President of the American Federation of Teachers, emphasized the importance of the bill, saying, “Sen. Markey’s pioneering legislation requires monitoring of how private equity impacts staffing levels, recruitment and retention, patient outcomes, and the number of beds available. The AFT fully supports Sen. Markey’s Health Over Wealth Act and encourages the Senate to put patients over profit and pass this bill.”
Conclusion
The introduction of the Health Over Wealth Act marks a significant step in the ongoing fight to ensure that healthcare prioritizes patients over corporate profits. As the bill moves through Congress, its supporters are hopeful that it will bring much-needed transparency and accountability to the healthcare industry, protecting both patients and workers from the harmful impacts of corporate greed.
