Senator Elizabeth Warren has recently introduced legislation aimed at combating cases of corporate greed in the health care industry. The bill, titled “Corporate Crimes Against Health Care,” seeks to establish new penalties for executives who compromise patient safety and access to care, including criminal penalties that could lead to up to six years in prison. The goal is to hold executives accountable for their actions that result in harm to patients.
The bill comes in response to the bankruptcy filing of Steward Health Care, which faced financial difficulties due to poor financial management. In 2016, Steward sold land its hospitals are located on, leading to significant debt that negatively impacted patient care. CEO Ralph De La Torre’s leadership has been under scrutiny, with accusations of mismanagement and financial misconduct.
Warren’s bill would empower state attorneys general to recover compensation from private equity executives who have engaged in looting of health care entities. This provision would extend over a 10-year period before or after financial difficulties arise due to looting. Additionally, the legislation includes more stringent reporting requirements for health care providers that receive federal funding, aimed at increasing transparency and accountability in the industry.
The proposed bill is an effort by Warren to address the issue of corporate greed in the health care sector and ensure that executives are held accountable for their actions that result in harm to patients. The bill seeks to prevent such incidents from happening again and promote greater transparency and accountability in the industry.
