U.S. Senator Chris Murphy and U.S. Representative Mary Gay Scanlon (D-Pa.-05) today announced the introduction of legislation addressing private equity ownership in healthcare and expanding worker protections in Connecticut and nationwide.
The Take Back Our Hospitals Act would make private equity-owned hospitals and nursing homes ineligible for Medicare funding, while The Patient Safety and Whistleblower Protections Act would provide legal protections for healthcare workers reporting patient safety concerns.
More than 400 hospitals and nursing homes are owned by private equity firms, according to the release, which links such ownership to reduced services, staffing cuts, and declining quality of care. The legislation is co-sponsored by U.S. Senator Richard Blumenthal.
Murphy described the impact on healthcare facilities, saying, “Private equity’s general business model is pretty simple: find hospitals that are in dire financial straits, make promises to fix things and then squeeze every cent they can out of patients before leaving communities to deal with the wreckage," said Murphy. “I saw this happen in Connecticut and it was devastating for patients and for the doctors and nurses who were desperately trying to take care of people as facilities were falling apart and supplies ran short. Patient care, not profit, should be the priority in hospital and nursing home care, and my legislation would get these firms out of health care and allow hospitals and nursing homes to put care first.”
Blumenthal emphasized patient care, stating, “By preventing private equity-owned hospitals and nursing homes from qualifying for Medicare, this bill prioritizes health care facilities and ensures they can provide Americans with the quality care they deserve. Putting profits over patients, private equity firms are buying up hospitals and nursing homes and wreaking havoc on the facilities—slashing resources and staffing and leaving communities with inadequate care and services,” said Blumenthal.
Murphy also highlighted the need for whistleblower protections, saying, “When I was investigating the conditions at three Connecticut hospitals bought by a private equity firm, I relied on the nurses, doctors, and support staff to share the truth about what was happening inside those facilities,” said Murphy. “ As Donald Trump’s health care cuts push more hospitals and nursing homes into the arms of private equity, we need to make sure that workers feel safe coming forward and calling out the greed and corruption that is destroying their ability to care for patients.”
Scanlon emphasized worker protections, stating, “Americans should be able to count on our hospitals and healthcare workers to prioritize patient care and safety,” said Scanlon. “At a time when the Trump administration continues to prioritize corporate profits over Americans’ health, healthcare workers should feel safe from employer retaliation when protecting patient care. I value Senator Murphy’s partnership in introducing the Patient Safety and Whistle Blower Protections Act to provide legal protections to hospital workers who prioritize patient safety concerns.”