[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3262 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 3262
To amend title XI of the Social Security Act to increase transparency
of certain health-related ownership information.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 11, 2023
Ms. Schakowsky (for herself and Mr. Bilirakis) introduced the following
bill; which was referred to the Committee on Energy and Commerce, and
in addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend title XI of the Social Security Act to increase transparency
of certain health-related ownership information.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MANDATORY REPORTING WITH RESPECT TO CERTAIN HEALTH-RELATED
OWNERSHIP INFORMATION.
Part A of title XI of the Social Security Act (42 U.S.C. 1301 et
seq.) is amended by adding at the end the following new section:
``SEC. 1150D. MANDATORY REPORTING WITH RESPECT TO CERTAIN HEALTH-
RELATED OWNERSHIP INFORMATION.
``(a) Mandatory Reporting With Respect Certain Health-Related
Ownership Information.--
``(1) Initial report.--Not later than January 1, 2025 (or
in the case of a specified entity formed after January 1, 2025,
within 60 days of becoming a specified entity), each specified
entity (as defined in subsection (f)(5)) shall submit to the
Secretary, in a form and manner specified by the Secretary, a
report containing the following information:
``(A) Data on mergers, acquisitions, and changes in
ownership with respect to such specified entity for the
previous 1-year period.
``(B) In the case that a specified entity is, or
includes, a hospital, the additional information
described in subsection (b).
``(C) As applicable, the name, address, and
business structure of the parent company of such
specified entity (including the tax status of such
parent company), as of the date of the submission of
this report.
``(D) Any other information with respect to
ownership of a specified entity, as determined by the
Secretary.
``(2) Subsequent reports.--Not later than 1 year after
submitting the report under paragraph (1), and annually
thereafter, each specified entity shall submit to the Secretary
an updated report, including--
``(A)(i) data on mergers, acquisitions, and changes
in ownership with respect to such entities for the
previous 1-year period; and
``(ii) any other information with respect to
ownership of a specified entity, as determined by the
Secretary; and
``(B) in the case that a specified entity is, or
includes, a hospital, the additional information
described in subsection (b).
``(b) Additional Information Submitted by Certain Specified
Entities.--For purposes of paragraphs (1)(B) and (2)(B) of subsection
(a), with respect to a specified entity that is, or includes, a
hospital, the information described in this subsection is the following
information with respect to the previous 1-year period:
``(1) The business structure of the specified entity,
including the business type and the tax status of such entity.
``(2) The average debt-to-earnings ratio of the specified
entity.
``(3) The average amount of debt incurred--
``(A) by the hospital; and
``(B) by the entire specified entity.
``(4) Information with respect to real estate leases and
purchases for property used, or intended to be used, to furnish
or otherwise support the provision of health care services.
``(5) In the case of a non-profit hospital, a subsidiary of
a non-profit hospital, or a 501(c)(3) entity that shares common
ownership with a non-profit hospital, capital gains investments
(disaggregated by the type of investment) and any taxes paid on
such gains from such investments.
``(6) As applicable, information with respect to the parent
company of such specified entity.
``(c) Public Reporting.--Not later than January 1, 2027, and
annually thereafter, the Secretary shall post on a publicly available
website of the Department of Health and Human Services a report with
respect to the previous 1-year period, including--
``(1) the number of specified entities reporting for such
year, disaggregated by the business structure of each specified
entity;
``(2) the number of owners of each specified entity;
``(3) any change in ownership for each specified entity;
``(4) any change in the tax status of a specified entity;
``(5) an analysis of trends in horizontal and vertical
consolidation, disaggregated by business structure and provider
type; and
``(6) as applicable, the name, address, and business
structure of the parent company of such specified entity
(including the business type and the tax status of such parent
company).
``(d) Audits.--The Secretary shall conduct an annual audit
consisting of a random sample of specified entities to verify
compliance with the requirements of this section and the accuracy of
information submitted pursuant to this section.
``(e) Penalty for Failure To Report.--If a specified entity fails
to provide a complete report under subsection (a), or submits a report
containing false information, such entity shall be subject to a civil
monetary penalty of not more than $5,000,000 for each such report not
provided or containing false information. Such penalty shall be imposed
and collected in the same manner as civil money penalties under
subsection (a) of section 1128A are imposed and collected under that
section.
``(f) Inapplicability of Paperwork Reduction Act.--Chapter 35 of
title 44, United States Code, shall not apply to collections of
information made under this section.
``(g) Definitions.--In this section:
``(1) Health plan.--The term `health plan' has the meaning
given such term in section 1128C(c).
``(2) Hospital.--The term `hospital' has the meaning given
such term in section 1861(e).
``(3) Independent freestanding emergency department.--The
term `independent freestanding emergency department' has the
meaning given such term in section 2799A-1(a)(3)(D) of the
Public Health Service Act.
``(4) Private equity company.--The term `private equity
company' means a publicly traded or non-publicly traded company
that collects capital investments from individuals or entities
and purchases an ownership share of a provider of services (as
defined in section 1861(u)).
``(5) Specified entity.--The term `specified entity'
means--
``(A) a hospital;
``(B) a physician-owned physician practice with
more than 25 physicians for a year;
``(C) a physician practice owned by a hospital, a
health plan, a private equity company, or a venture
capital firm;
``(D) an ambulatory surgical center meeting the
standards specified under section 1832(a)(2)(F)(i); or
``(E) an independent freestanding emergency
department.
``(6) Venture capital fund.--The term `venture capital
fund' has the meaning given such term in section 275.203(l)-1of
title 17, Code of Federal Regulations.''.
<all>