PRINTER'S NO. 3227
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2668
Session of
2022
INTRODUCED BY ZABEL, O'MARA, MADDEN, SCHLOSSBERG, DELLOSO,
KRAJEWSKI, D. WILLIAMS, GUENST, SHUSTERMAN, WEBSTER, DALEY,
HILL-EVANS AND HOWARD, JUNE 13, 2022
REFERRED TO COMMITTEE ON HEALTH, JUNE 13, 2022
AN ACT
Establishing a moratorium on for-profit hospital ownership; and
directing the Joint State Government Commission to study and
issue a report on for-profit hospitals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the For-Profit
Hospital Moratorium Act.
Section 2. Legislative findings.
The General Assembly finds and declares as follows:
(1) From 1999 to 2020, the proportion of non-profit-
owned hospitals in Pennsylvania fell by roughly 18% while the
proportion of for-profit-owned hospitals grew by nearly 348%.
(2) The strength of this Commonwealth's overall hospital
network is critical to the well-being of all Pennsylvania
residents.
(3) The for-profit hospital model's diverging interests
due to its tax status can result in a different approach to
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care and corporate governance.
(4) Financial troubles at some hospitals may stem in
part from their status as for-profit institutions.
(5) The ramifications of any potential hospital closures
are felt in health centers across this Commonwealth,
potentially overtaxing their ability to provide necessary
health care.
(6) Total health care expenditures in Pennsylvania more
than doubled from 1999 to 2014, rising from more than
$54,000,000,000 in 1999 to more than $118,000,000,000 in
2014.
(7) The vast majority of Americans feel that health care
expenses are too high and over 50% of Americans say they have
avoided needed medical care due to an inability to pay.
(8) For the General Assembly to best address the issue
of high health care costs and develop policy, necessary
information is essential, including an understanding of the
impacts the recent increase in for-profit hospital ownership
has had in Pennsylvania.
(9) A moratorium on approvals of any new for-profit
hospitals or transfer of ownership would grant the General
Assembly the time necessary to conduct a comprehensive review
of for-profit hospital entities and their impact on the
financial condition of the hospitals they operate, other
hospitals in this Commonwealth and the overall health care
system.
Section 3. Moratorium.
There shall be a moratorium for 24 months on the transfer of
ownership of a hospital or health system in this Commonwealth if
the acquiree or the acquirer is a for-profit entity.
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Section 4. Study.
Within 18 months of the effective date of this section, the
Joint State Government Commission shall conduct a study of for-
profit hospital and health system ownership in this Commonwealth
that shall include:
(1) Causes for the increase in for-profit hospital and
health system ownership that has occurred in this
Commonwealth.
(2) Costs and benefits of for-profit versus nonprofit
hospital and health system ownership.
(3) Recommendations for policies to improve health care
costs and functionality in this Commonwealth.
Section 5. Report.
Within 18 months of the effective date of this section, the
Joint State Government Commission shall issue the report on its
findings under section 4 to the members of the Senate, the
members of the House of Representatives and the Governor.
Section 6. Expiration.
This act shall expire 24 months after the effective date of
this section.
Section 7. Effective date.
This act shall take effect immediately.
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