Senator Elizabeth Warren has unveiled new legislation aimed at curbing the influence of private equity in the health care sector, proposing severe penalties for executives whose actions result in patient fatalities. The announcement took place Tuesday at St. Elizabeth’s Medical Center in Brighton — one of the hospitals affected by Steward Health Care’s bankruptcy — serving as a backdrop.
Warren’s proposed Corporate Crimes Against Health Care Act seeks to impose criminal penalties, including up to six years in prison, for health care executives whose corporate practices result in the death of a patient. The bill also aims to introduce measures to protect patients, health care workers, and hospitals from what Warren describes as private equity “looting.”
“When it comes to health care providers, the harm of private equity is literally a matter of life and death,” Warren stated during the press conference.
Today I'm introducing new legislation to prevent what happened with Steward Health Care from happening again.
— Elizabeth Warren (@SenWarren) June 11, 2024
If private equity executives drive a hospital like Steward into bankruptcy, putting patients & communities at risk, there should be consequences.https://t.co/eRw7LD9UNk
This announcement comes amidst the financial turmoil at Steward Health Care, which recently filed for bankruptcy. Warren highlighted a tragic incident from October, where a new mother died at St. Elizabeth’s due to the unavailability of necessary medical supplies, which had been repossessed over unpaid bills.
“She died a preventable death,” Warren said. “Turning private equity and corporate greed loose in our health care system kills people. We need real accountability and we need it now.”
The bill includes provisions to empower state and federal authorities to recover compensation from private equity executives and reinvest it in health care systems. Warren took at potshot at Steward’s CEO Ralph de la Torre, saying, “That’s right, Ralph — we will take back your yachts.”
Additionally, the legislation aims to enhance transparency by mandating health care providers that receive federal funding to publicly disclose mergers, acquisitions, ownership changes, and financial data.
Massachusetts Nurses Association President Katie Murphy expressed support for the bill, emphasizing the negative impact of private equity on health care. “The corporatization and commodification of health care has left a trail of broken promises,” Murphy said.
Warren emphasized the need for coordinated efforts at both the state and federal levels to ensure the survival of hospitals and prevent further harm from private equity practices. “We must make sure that these private equity executives understand they cannot come into our hospitals, suck all the value out of them, lavish the money on themselves, and leave behind an empty shell where people cannot get the services they need,” she asserted.
