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Senate of Pennsylvania
Session of 2021 - 2022 Regular Session


Posted: June 8, 2022 12:50 PM
From: Senator Timothy P. Kearney and Sen. Amanda M. Cappelletti, Sen. John I. Kane, Sen. Anthony H. Williams
To: All Senate members
Subject: For-Profit Healthcare Reform: Moratorium and Study on For-Profit Hospital Ownership
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%. During that same period, health care costs more than doubled in our state. These rising costs are an issue for people throughout our state, and the strength of our overall hospital network is critical to the wellbeing of all Pennsylvanians.
For the state legislature to address the issue of high health care costs, necessary information is essential. This includes an understanding of the impacts the recent increase in for-profit hospital ownership has had in Pennsylvania. That is why we are introducing legislation that:
  • Establishes a moratorium for 24 months on the transfer of ownership of a hospital or health system in Pennsylvania if the acquiree or the acquirer is a for-profit entity; and
  • Directs the Joint State Government Commission to study for-profit hospital and health system ownership, including the causes for the increase in for-profit ownership and the costs/benefits of for-profit versus non-profit ownership.

This legislation is one in a package of bills being introduced to combat negative impacts on Pennsylvania communities caused by trends in for-profit health system management. We ask that you join us in supporting this important legislation. A moratorium on approvals of new for-profit hospitals will give us the time we need to conduct a comprehensive review of for-profit hospitals and their impact on health care in our state.

Introduced as SB1270