Bill Suggests Prison Time For Corporate Greed Crimes In Health Care
Democratic Sens. Elizabeth Warren and Ed Markey's introduced bill would offer more methods for investigating health care top brass accused of corporate exploitation. Meanwhile, Steward Health Care has found $225 million in emergency funding.
Fox News:
Sens. Warren, Markey Propose Bill That Would Lead To Prison Time For 'Corporate Greed' In Health Care
Massachusetts Sens. Elizabeth Warren and Ed Markey, both Democrats, introduced legislation Tuesday that would result in prison time for violators of "corporate greed" in health care. The Corporate Crimes Against Health Care Act would also offer state attorneys general and the U.S. Justice Department more tools to go after health care executives accused of corporate exploitation for endangering patient safety and access to health care, according to a press release. Warren delivered remarks in front of Steward’s St. Elizabeth's Medical Center in Brighton, taking issue with the financial management of Steward under CEO Ralph de la Torre. (Mion, 6/12)
Bloomberg:
Steward Health Gets $225 Million Funding To Keep Hospitals Open
Steward Health Care System LLC has lined up $225 million in emergency financing, a lifeline the bankrupt hospital operator said is needed to avoid closing and depriving care to millions of patients. The biggest private for-profit hospital chain in the country needed the infusion as hospital landlord Medical Properties Trust Inc. declined to advance more than an initial $75 million Chapter 11 loan, Steward Chief Restructuring Officer John Castellano said in a sworn statement Tuesday. (Randles, 6/11)
More health industry updates —
Modern Healthcare:
Why Medicare Advantage Brokers Are Suing CMS Over Pay Caps
The Centers for Medicare and Medicaid Services' efforts to halt Medicare Advantage and Part D marketing practices it deems "predatory" have landed the agency in court. In April, CMS published a final rule that limits how, and how much, health insurance companies may compensate brokers, independent agents and other third-party marketers for guiding enrollees toward Medicare Advantage and Part D plans. The people whose pay got cut objected, and a growing number have sued to stop the regulation. (Tepper, 6/11)
Modern Healthcare:
Novant-CHS Deal: Judge Denies FTC Injunction Request
A U.S. district judge Tuesday denied another motion from the Federal Trade Commission to block Novant Health's acquisition of two North Carolina hospitals from Community Health Systems while the case is being appealed. Judge Kenneth Bell did, however, extend a temporary restraining order on the transaction until 12 p.m. June 21, giving the FTC time to request a similar injunction from the Fourth Circuit Court of Appeals. Novant and Community Health Systems had previously been authorized to close the deal Wednesday. (Hudson, 6/11)
The Mercury News:
$1.6 Billion Oakland Hospital Project Hits Milestone With Jobs Deal
A project to build a modern UCSF Benioff Children’s Hospital Oakland has gained a major milestone through a key jobs deal to prioritize hiring local workers for the $1.6 billion plan. The Building and Construction Trades Council of Alameda County, a major East Bay labor organization, and Rudolph and Sletten, a big-time construction firm that is the general contractor for the project, have crafted a jobs deal for the project. (Avalos, 6/11)
Modern Healthcare:
Waystar’s IPO Could Pave Way For Ro, Noom, Headspace
Waystar's initial public offering could lead to a wave of digital health companies going public. Waystar was the first digital health company to go public since August 2022. Companies have been hesitant to enter the public markets but analysts said the tide is beginning to turn, albeit slowly, starting with Waystar's Nasdaq debut Friday. (Turner, 6/11)
Also —
Los Angeles Times:
Two Pasadena Doctors Accused Of Overprescribing Narcotics
Two Pasadena doctors are facing allegations from the California Medical Board that they negligently prescribed painkillers and other potentially dangerous narcotics to patients. Officials are seeking to revoke or suspend the medical licenses of Dr. Elisa Cuellar Alvarado and Dr. Robert D. Siew, according to two separate accusations filed this year. Both doctors practice internal medicine and are permitted to see patients at Huntington Hospital, according to their bios. (Fry, 6/11)
The New York Times:
Four Tops Singer Sues Hospital Over Being Put In Restraints
A singer who joined the storied Motown group the Four Tops in 2018 sued a Michigan hospital on Monday, accusing its staff of placing him in restraints and ordering a psychological evaluation because they did not believe he was part of the band. The singer, Alexander Morris, who is Black, filed a lawsuit accusing Ascension Macomb-Oakland Hospital of racial discrimination and two employees of negligence for an incident in April 2023, when he was taken there by ambulance with chest pain and difficulty breathing. (Jacobs, 6/11)
