Health Care

New Mass. law targets private equity ownership in health care

Massachusetts will become the first state to bar certain “sale leaseback” agreements in health care settings.
Massachusetts Gov. Maura Healey (D) (AP Photo/Steven Senne)

Massachusetts Gov. Maura Healey (D) on Wednesday signed legislation tightening oversight of private equity takeovers in the health care industry, months after the stunning collapse of Steward Health Care, a for-profit hospital operator that went bankrupt in May.

The legislation will give more power to various state agencies, boards and committees tasked with reviewing health care industry acquisitions. It also significantly increases the financial penalties for hospitals, providers, pharmacy benefit managers and other entities that fail to submit required data on time. 

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