Pennsylvanians are increasingly losing access to health services due to health system consolidations, cuts, and closures. As the healthcare industry transforms, many Pennsylvanians are being left without options and without a voice. We plan to introduce legislation to protect Pennsylvanian’s access to health services.

Recently, the Health Care Facilities subcommittee heard from health care experts about the causes and consequences of hospital consolidations and closures: Health providers increase their size through acquisitions to better negotiate with insurers and private equity investment firms purchase hospitals to raise funds for investors, creating additional pressure to put profitability over patient safety and accessibility.

Meanwhile we know consolidation often means increased prices without increased quality, and too often purchased hospitals end up discontinuing services and closing wards – like maternity wards – or worse yet closing altogether.

Delaware County had an up-front seat to the troubling market forces impacting health systems.

Crozer Health System closed 2 of its 4 hospitals following the sale and leaseback of its real estate, and a $425M dividend was paid to its private equity owners from the sale proceeds. The local community got nothing except the devastation of its health services and the Commonwealth had no power to stop it.

While Pennsylvania’s Attorney General has the authority to scrutinize sales involving nonprofit health facilities, they are limited to ensuring that the nonprofit’s charitable assets are being used lawfully. The Commonwealth needs authority to stop mergers and other transactions that threaten access to health services.

Our legislation would require health systems to file notice and documentation to the Office of the Attorney General before completing critical transactions and provide the Attorney General’s office with the tools needed to do their job of protecting the interests of healthcare consumers. Our bill will be substantially similar to Senate Bill 548, but will include all hospital systems, including non-profit and for-profit systems.
 

Statutes/Laws affected:
Printer's No. 3177: P.L.130, No.48
Printer's No. 3406: P.L.130, No.48
Printer's No. 3503: P.L.130, No.48
Printer's No. 3726: P.L.130, No.48