U.S. Sen. Elizabeth Warren announced legislation Tuesday morning aimed at warding off future cases of “corporate greed” involving private equity in the health care landscape, like the kind that she says led to for-profit Steward Health Care filing for bankruptcy.
Standing across the street from Steward’s St. Elizabeth’s Medical Center in Brighton, Warren outlined her “Corporate Crimes Against Health Care” bill that would establish new penalties and guardrails for business leaders who endanger patient safety and access to care — including a new criminal penalty that could send executives to prison for up to six years.
That punishment would be for those who “loot health care entities like nursing homes and hospitals, if that looting results in a patient’s death,” according to a bill summary provided by Warren’s office.
“This looting is happening all across the country, from hospitals, to nursing homes, to provider practices, and corporate executives scoop up the cash and avoid any responsibility. I’ll say it bluntly, turning private equity and corporate greed loose in our health care system kills people,” Warren said at a press conference. “We need real accountability, and we need it now. That is why today I am introducing my Corporate Crimes Against Health Care Act to prevent what happened with Steward from ever happening again.”
Warren indicated her bill, if approved, would not apply directly to Steward, which owns eight hospitals in Massachusetts. But the senator said her proposal would apply to private equity situations moving forward.
“It applies to private equity trying to buy any part of the health care system,” Warren said, as she listed examples like hospitals and nursing homes. “It’s not about stopping general investment in hospitals. It’s about saying that when the whole design is to come in and take the hospital over, sell off its assets, use those assets for private gain, and leave behind an empty…