Substitute House Bill No. 7224 aims to enhance accountability and transparency in healthcare transactions and expand liability under the False Claims Act. The bill introduces new definitions, such as "ownership or investment interest," which includes equity ownership exceeding ten percent, and requires individuals with such interests to report any violations of the Act within sixty days of awareness. It also modifies existing definitions and clarifies terms like "claim," "person," and "state." The legislation increases penalties for knowingly presenting false claims, establishing civil penalties ranging from $5,500 to $11,000, along with treble damages for the state, while exempting certain tax-related claims.

Additionally, the bill mandates that any entity filing merger or acquisition information with federal authorities must notify the Attorney General, particularly when involving hospitals or healthcare providers. It prohibits the licensing of hospitals that lease their main campus from a healthcare real estate investment trust (REIT) unless the lease was established before October 1, 2025. The bill also requires hospitals to report affiliations with other hospitals or systems, detailing the nature of their relationships and services. Overall, the legislation seeks to strengthen regulatory oversight in healthcare practices and transactions, with an effective date set for October 1, 2025.

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