Substitute House Bill No. 7224 seeks to enhance accountability and transparency in healthcare financial dealings by expanding 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 mandates that individuals with such interests 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 violations, establishing civil penalties ranging from $5,500 to $11,000, along with treble damages for the state, while exempting certain tax-related claims from its scope.

Additionally, the bill imposes new requirements on hospitals and group practices, including the necessity to notify the Attorney General about significant business changes, such as mergers or acquisitions involving eight or more physicians, at least thirty days in advance. It also mandates annual reporting to the Attorney General and the Commissioner of Health Strategy regarding affiliations and activities. Notably, the bill prohibits the Commissioner of Public Health from issuing or renewing a hospital's license if its main campus is leased from a healthcare real estate investment trust (REIT) unless the lease was established before October 1, 2025. The effective date for these changes is 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