Senate Health and Human Services [Source] Translate

The meeting addressed the impact of private equity ownership in healthcare, particularly regarding hospital acquisitions. Concerns were raised about management fees, demands for quarterly profits, and the prioritization of short-term financial returns over patient care, leading to asset stripping, facility closures, and increased debt burdens. Statistics indicated that over 20% of healthcare entities filing for bankruptcy in 2023 were private equity-owned, with examples like Steward Healthcare in Massachusetts, which faced bankruptcy after significant asset extraction. Legislative action was discussed, specifically Senate Bill 666, which aims to require advance notice for private equity acquisitions of healthcare facilities, ensuring transparency about debt obligations and management fees. The bill would empower the Attorney General to review these transactions to protect healthcare access and quality. Concerns about potential monopolization of healthcare practices and reduced competition were highlighted, with the bill seen as a proactive measure to prevent negative outcomes. Committee members questioned the bill's provisions, the Attorney General's role in transaction reviews, and the adequacy of a proposed 30-day review period. The Attorney General's representative supported the bill but expressed concerns about the review timeline and resource needs. The meeting also discussed the need for additional resources within the department responsible for reviewing healthcare transactions, emphasizing the absence of an in-house economist. Concerns were raised about the implications of the proposed law on individual practitioners, with a need for a balanced regulatory approach. Testimony from Ben Bradley of the New Hampshire Hospital Association opposed the bill, citing potential regulatory burdens. Senator David Rochefort introduced a separate bill addressing executive compensation in hospitals, proposing an 18-month freeze on executive pay in facilities that conduct significant layoffs, arguing against using public funds to enhance executive pay during layoffs. The meeting highlighted the tension between ensuring accountability in executive compensation and allowing hospitals the flexibility to make necessary decisions. Concerns were raised about the bill's potential to undermine healthcare organizations' stability, particularly in rural areas. Testimonies from various stakeholders reflected differing views on the proposed legislation's impact on healthcare delivery and executive compensation. The meeting transitioned to discussions on Senate Bill 670, aimed at establishing a Developmental Services Oversight Commission to improve oversight and accountability in the care of vulnerable adults. Support and concerns were expressed regarding the bill's definitions and potential resource burdens. Testimonies regarding proposed legislation for improving oversight in the disability care system emphasized the need for accountability and better communication among state departments. The meeting also included discussions on Senate Bill 665, focusing on transparency in pharmacy benefit management, advocating for the disclosure of the lowest available drug prices to consumers. The meeting concluded with motions to move into executive session to discuss various Senate bills, with several bills passing or being proposed for interim study. The next meeting was scheduled for two weeks later, focusing on topics including SNAP and pharmacy benefit managers.