Bill Overview
Title: Healthcare Ownership Transparency Act
Description: This bill requires health care corporations that participate in Medicare to disclose private equity interests and related financial information. Specifically, the bill requires corporations, as part of the Medicare enrollment and revalidation processes for providers and suppliers, to disclose information about debts, assets, financial transactions, and other information. Providers that are controlled by private equity funds (e.g., venture capital funds) must disclose similar information as well as specific information relating to the private equity fund, such as the percentage of equity contributed by the partners of the fund. The Government Accountability Office must use this information to periodically evaluate the extent to which health care consolidation is taking place and the effects of private equity in health care on costs, staffing, and other factors. The Department of Health and Human Services (HHS) must also establish a task force to address and limit the role of private equity and consolidation in health care. HHS may prohibit certain mergers or acquisitions until the task force has had sufficient time to assess whether there are abusive practices in specific health care sectors or by health care entities.
Sponsors: Rep. Jayapal, Pramila [D-WA-7]
Target Audience
Population: People interacting with healthcare corporations affected by private equity globally
Estimated Size: 65000000
- The bill targets health care corporations that are involved in Medicare, specifically those influenced by private equity.
- Medicare is a significant part of the U.S. healthcare system, covering millions of Americans, mainly those aged 65 and older.
- Private equity involvement in healthcare can lead to changes in costs, staffing levels, and service quality.
- The bill might lead to increased regulatory scrutiny on healthcare providers with private equity backing, potentially changing how healthcare services are managed and delivered.
- Globally, private equity's involvement in healthcare is significant, especially in corporate healthcare chains.
Reasoning
- The policy is expected to impact primarily those who are enrolled in Medicare or have direct interaction with Medicare services since the policy increases transparency regarding private equity involvement.
- The American target estimate of 65 million individuals includes Medicare enrollees and their families, caregivers, and related providers.
- Since private equity involvement can affect healthcare costs and service levels, the policy could help maintain or improve the quality of care by shedding light on financial practices.
- Different segments within the 65 million might experience varying levels of impact due to diversity in the level of private equity involvement across healthcare providers.
Simulated Interviews
Retired (Florida)
Age: 68 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I'm glad the government will monitor these big companies. I depend on Medicare for all my healthcare needs and haven't been happy with the rising costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Retired (California)
Age: 74 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- I'm concerned about all these mergers. If the policy can prevent price hikes or service cuts, I'm all for it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 8 | 3 |
Healthcare Administrator (New York)
Age: 40 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 10/20
Statement of Opinion:
- This policy seems like it could stabilize the rapid changes happening in our sector. I've been worried about layoffs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 2 |
Registered Nurse (Texas)
Age: 32 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- It's about time there's more oversight. Staff cuts have made working conditions unbearable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 7 | 3 |
| Year 5 | 8 | 2 |
| Year 10 | 7 | 2 |
| Year 20 | 6 | 2 |
Patient Advocate (Ohio)
Age: 61 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- We need some form of control over these large corporations. This seems a step in the right direction.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Private Equity Analyst (Illinois)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- While this might restrict some of our activities, it's necessary for a sustainable healthcare system.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired Farmer (Oregon)
Age: 89 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- As long as it keeps my healthcare the same without raising costs, I'm happy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Primary Care Physician (Georgia)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- It might add bureaucracy, but understanding equity involvement is important for fair practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Medicare Policy Analyst (New York)
Age: 53 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- The need for understanding these financial involvements is crucial. It may not immediately change things for beneficiaries, but it's a start.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Hospital Executive (Texas)
Age: 65 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 10/20
Statement of Opinion:
- While potentially challenging to maneuver, this transparency can help guide better patient care strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Cost Estimates
Year 1: $70000000 (Low: $60000000, High: $80000000)
Year 2: $75000000 (Low: $65000000, High: $85000000)
Year 3: $80000000 (Low: $70000000, High: $90000000)
Year 5: $85000000 (Low: $75000000, High: $95000000)
Year 10: $100000000 (Low: $90000000, High: $110000000)
Year 100: $150000000 (Low: $140000000, High: $160000000)
Key Considerations
- The complexity and cost of implementing a new system for financial disclosure from healthcare entities.
- Potential resistance from stakeholders within the healthcare and private equity sectors, affecting compliance and full realization of benefits.
- The capacity of the Government Accountability Office and HHS to effectively enforce new regulations and achieve desired transparency.
- Calculating actual savings or avoided costs from increased oversight will be challenging.
- Long-term impacts on the structure of the healthcare market, especially concerning smaller providers being able to withstand competitive pressures.