Budget Amendment ID: FY2025-S4-605
EHS 605
Combatting reckless profiteering in hospital systems
Messrs. Montigny, O'Connor, Brady and Fattman moved that the proposed new text be amended by inserting after section ___ the following sections:-
"SECTION __. Section 11 of chapter 12C of the General Laws, as so appearing. is hereby amended by striking out the fourth and fifth sentences and inserting in place thereof the following sentences:-
The center shall assess a penalty against a private payer, provider or provider organization that fails, without just cause, to provide the requested information within 2 weeks following receipt of the written notice required under this paragraph, of up to $50,000 per week for each week of delay after the 2-week period following the private payer's, provider's or provider organization's receipt of the written notice. An amount collected under this section shall be deposited in the Healthcare Payment Reform Fund established by section 100 of chapter 194 of the acts of 2011.
The center shall notify the commission and the department of public health if the center has assessed a penalty under this section. Said notification shall be considered by the commission in a review under section 13 of chapter 6D and by the department in determining licensure and suitability in accordance with section 51G of chapter 111 and shall be considered by the department in a determination under section 25C of chapter 111.
The center may promulgate regulations to define “just cause” for the purposes of this section.
SECTION __. Said section 51G of said chapter 111 of the General Laws, as so appearing, is hereby further amended by inserting the following subsections:-
(7) No original license shall be granted to establish or maintain an acute-care hospital, as defined by section 25B and any subsequent successor or acquirer, unless the applicant, or an affiliate directly owned or controlled by said applicant, either owns in fee simple the real property upon which said hospital is located or, in the case of a merger or acquisition of an existing hospital, enters into or assumes a lease obligation that is equal to or less than fair market value. Said fair market value shall be determined by an independent appraisal of the real estate conducted in consultation with the secretary of the executive office of health and human services and approved by the inspector general.
(8) No original license shall be granted to establish or maintain an acute care hospital as defined by section 25B for any applicant who fails to report information required under section 8 of chapter 12C.
SECTION __. Chapter 111 of the General Laws, as so appearing, is hereby amended by inserting after section 51L the following section:-
Section 51M. The superior court department of the trial court, upon petition of the attorney general, the department, or health policy commission shall appoint a receiver for any acute-care hospital subject to licensing under section 51 provided that the court finds that the hospital is operating without a license or that an emergency exists such that the health and safety of patients is at risk. An “emergency” shall mean a situation or condition which presents an imminent danger of death, serious physical harm, or inability to care for patients, including but not limited to imminent or actual abandonment of an occupied facility. Such risk shall consider the impact of a sudden facility closure upon the capacity of nearby facilities to safeguard patient health and safety.
The court shall issue a short order of notice where an emergency is alleged and set the matter for hearing within five days after filing of the action. A receiver shall be appointed immediately, on an ex parte basis, if it appears by verified complaint or by affidavit that there are grounds for the appointment of a receiver and that immediate appointment is necessary to prevent harm to patients or the health care system.
The purpose of a receivership created under this section shall be to safeguard the health, safety, and continuity of care to patients and to protect them from the adverse health effects and increased risk of death or injury by abrupt or unsuitable closure or transfer. No person shall impede the operation of a receivership created under this section.
When a receiver is appointed, the licensee shall be divested of possession and control of the facility in favor of the receiver. With the approval of the court, the receiver shall have authority to remedy violations of federal and state law and regulations governing the operation of the facility; to hire, direct, manage and discharge any consultant or employees; to receive and expend in a reasonable and prudent manner the revenues of the facility; to continue the business of the facility and the care of the patients; to perform those acts necessary or desirable to accomplish the purpose of the receivership; to perform regular accountings and make periodic reports to the court; and to exercise such additional powers and perform such additional duties, as the court may deem appropriate.”