PHILADELPHIA (KYW Newsradio) — The Pennsylvania House passed a bill this week aimed at giving the state more say when a for-profit company tries to buy a health care system. It would also allow the state more oversight for up to a decade after the transaction.
Delaware County Democratic State Representative Lisa Borowski is the driving force behind the legislation. She pointed to Prospect Medical Holdings’ purchase and eventual closure of Crozer, calling it “legalized looting.”
“Took advantage of Pennsylvania taxpayers to the tune of 60 — over $60 million — money that the state invested to help keep the system afloat while the shareholders and owners watched and counted their gains from afar.”
She says the bill isn’t designed to prevent private equity in health care. Instead, it requires the Pennsylvania Attorney General’s office to review any for-profit purchase, merger or acquisition of a health care system and to oversee that system after the acquisition.
“We are not interested in preventing care or making access more challenging. We are interested in making sure that bad actors do not come to our Commonwealth, target struggling health care facilities and sell off the parts for personal gain.”
Twenty House Republicans voted with all but one Democrat in favor of the bill, including Chester and Delaware County Republican Craig Williams.
“I hope for you that private equity never comes in your county to take care, take over your health care. But if it does, House Bill 1460 stands there for you, ready to give the Attorney General the opportunity to give you a little bit of relief.”
The bill now heads to the State Senate, where Democrat Tim Kearney has introduced a similar bill.
Opponents of the bill said it doesn’t go far enough, or that it creates burdensome regulations that will increase the cost of health care.