Vote Smart's Synopsis:

Vote to pass a bill that increases oversight of hospital sales, mergers and acquisitions involving for-profit and private equity companies in Pennsylvania.

Highlights:

• Defines “covered transaction” as a transaction involving at least one health care entity and one for-profit entity or investor, including the following (Sec. 102):

• The sale, transfer, lease, or other encumbrance of a material amount of a health care entity’s assets;

• A change in control of a health care entity; or

• A capital distribution or similar reduction of a health care entity’s equity capital.

• Prohibits covered health care transactions that are against the public interest (Sec. 301).

• Exempts actions prohibited by the previous paragraph if it is determined by the Attorney General that there is no feasible alternative to prevent a health care entity’s closure or a greater loss of health care services without the covered transaction (Sec. 301).

• Requires health care entities to complete one of the following prior to entering into a covered transaction (Sec. 302):

• File a notification with the Attorney General that includes all transaction documents and information of the transaction’s effect on health care availability and access in the community served, and undergo a 60-day waiting period; or

• Obtain a written determination from the Attorney General that the covered transaction is not against the public interest.

• Authorizes the Attorney General to request additional information or documentation from a party of the proposed covered transaction prior to 30 days of expiration of the waiting period (Sec. 302).

• Authorizes the Attorney General to extend the waiting period for an additional 30 days to gather additional necessary information and documentation (Sec. 302).

• Authorizes the Attorney General to conduct one or more public hearings on the proposed covered transaction, and requires any hearings to be livestreamed on their website with recordings posted afterward (Sec. 303).

• Requires the Attorney General to, with input from the Department of Health, determine whether the covered transaction is likely to have an impact that is against the public interest by the end of the waiting period (Sec. 304).

• Authorizes the Attorney General to commence action in a court of competent jurisdiction or impose conditions on the parties in a covered transaction to mitigate the aspects which make it against the public interest (Sec. 304).

Full Bill Text