Certain investor-owned hospitals and skilled nursing facilities would lose Medicare payments

Medicare would stop paying hospitals and skilled nursing facilities owned or controlled by covered investment firms or their affiliates. Covered firms include private equity funds, corporations they own or control, and real estate investment trusts. Related companies under shared control also count. Control includes management power or at least 10% of voting securities. Facilities already under covered ownership or control when the bill becomes law would have three years to comply. Facilities found in violation would receive reasonable notice and an opportunity for a hearing. The three-year grace period would end three years after enactment.

Covered firms and their affiliates would share full responsibility for penalties or obligations imposed on a facility for violating the payment ban. This responsibility would cover a covered firm or its affiliate that owns the violating facility or is affiliated with it. The facility must violate the Medicare payment ban. Each responsible firm could be required to pay the full amount, rather than only a share.