Brooks, Committee Advance Bill Addressing Oversight of Hospital Mergers and Acquisitions

HARRISBURG - Chair of the Senate Health & Human Services Committee, Senator Michele Brooks (R-50), amended House Bill 2344 this week to further provide oversight for hospital acquisitions and major consolidations.

In Pennsylvania, there have been 15 hospital closures in the past five years. All but one of these closures was preceded by a change in ownership, merger or acquisition. Current law limits what the Attorney General's Office can review in advance of these deals and provides no requirement for notification.

"I have seen firsthand in my district the need for additional oversight when hospitals are acquired or consolidated," Brooks said. "It is my hope that this legislation would help prevent what is occurring with Sharon Regional Hospital and how it has impacted the community, health care, nurses, doctors, and all the dedicated employees who continue every day to offer quality patient care."

The amended legislation would require hospitals and health systems to provide advance state-level notification and accompanying documentation of mergers and acquisitions that exceed a threshold of $10 million, which is similar to federal requirements.

"There are so many communities that have been challenged with their hospitals closing or being downsized, as we are seeing an alarming uptick in for-profit health systems entering into deals that are not designed for long-term viability and access to sustainable, quality health care." said Brooks. "This is why I am completely committed to the current endeavor to have Meadville Medical Center acquire Sharon Regional Hospital, as they have demonstrated a strong commitment to the community and have a long legacy nearby in Crawford County. This would require the current property owner to release the properties in the best interest of the community."

HB 2344 was passed from committee unanimously and now heads to the full Senate for consideration.

CONTACT:

Adam Gingrich - 717-787-1322