The Substitute House Bill No. 7224 seeks to enhance accountability and transparency in healthcare transactions by expanding liability under the False Claims Act. It introduces new definitions, such as "ownership or investment interest," which includes any direct or indirect equity exceeding ten percent in an entity. Individuals with such interests are required to report any violations of the False Claims Act within sixty days of becoming aware of them. The bill also modifies existing definitions related to "knowing" and "claim," clarifying the criteria for false claims and the obligations of involved parties. Additionally, it repeals and replaces sections of the general statutes to incorporate these changes, emphasizing civil penalties and treble damages for violations.

Moreover, the bill establishes new requirements for healthcare providers, including mandatory notifications to the Attorney General regarding mergers, acquisitions, and material changes in business structures involving group practices with eight or more physicians. It also mandates annual reporting of affiliations and activities by hospitals and group practices to ensure oversight. Notably, the bill prohibits the licensing of hospitals that lease their main campus from a health care real estate investment trust (REIT) unless the lease was established before October 1, 2025. The effective date for these provisions is set for October 1, 2025, reflecting a significant shift in regulatory practices within the healthcare sector.

Statutes affected:
Raised Bill: 4-274, 4-275
GAE Joint Favorable: 4-274, 4-275
File No. 691: 4-274, 4-275