Legislative and Regulatory Actions

Impacting Private Equity in Health Care



In recent years, the role of private equity in health care has come under scrutiny from regulators and policymakers because of concerns about potential impact on the cost and quality of care. Recent legislative and regulatory actions at both federal and state levels aim to address these concerns and regulate the influence of private equity in health care. This update provides an overview of some recent health law developments and their potential impacts.

Federal Legislative Actions

Health Over Wealth Act^[1]

Introduced July 25, 2024, by Senator Edward Markey (D-MA) and Rep. Pramila Jayapal (D-WA), this legislation would increase transparency and accountability for private equity firms in health care. The Act would require annual reporting to the Department of Health and Human Services (HHS) on various financial and operational metrics. It also would mandate private equity firms to obtain a license from HHS for health care transactions, with the potential for license revocation for non-compliance. Finally, the Act would enhance protections for workers and includes provisions for escrow accounts to ensure operational continuity in case of financial disruptions.

Additionally, under the Health Over Wealth Act, private equity-owned health care facilities must inform the public and allow for public comments before closing or reducing services. The Act also proposes the creation of an HHS task force to examine the influence of private equity and consolidation in the health care sector, potentially limiting their roles to safeguard public health. Moreover, health care entities looking to sell or lease property to real estate investment trusts (REITs) would need to seek HHS approval, which could be denied if the transaction threatens the financial stability of the entity or public health. Finally, the legislation also aims to eliminate tax loopholes for REITs.

Residents Urged to Protect Themselves from Mosquito Bites

Oakland County Health Division is urging residents to protect themselves from mosquito bites after three birds and the county’s first mosquito pool of 2024 have tested positive for West Nile virus (WNV). No confirmed human cases of WNV have occurred in the county this year.

“These test results mean that West Nile Virus is present in Oakland County and the best way to prevent getting diseases spread by mosquitoes is to avoid being bitten,” said Leigh-Anne Stafford, Oakland County’s director of Health & Human Services. “As we enjoy outdoor events in summer and fall, it’s important to protect ourselves against mosquito bites.”

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The Oakland County Medical Society has been one of the leading physician medical associations for legislative action and community outreach since 1831. OCMS works together with the Michigan State Medical Society to optimize patient, physician, and community well-being through professional support; public health activism; and advocacy for excellence in patient care.