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Pressure From Powerful Hospital Lobby Prompts Lawmakers to Limit Proposed Merger Crackdown
- Democratic lawmakers narrowed their proposed hospital mergers crackdown in 2025 to focus only on private equity-owned for-profit operators, excluding nonprofits in Pennsylvania.
- This revision came after advocacy efforts by Pennsylvania’s hospital trade group, which represents 235 healthcare facilities and contended that a more comprehensive bill would impose additional regulatory challenges.
- State Rep. Lisa Borowski has reintroduced a more limited bill targeting for-profit entities, including private equity investors, that would prohibit sale-leaseback arrangements where these investors divest hospital property only to lease it back to the facility at inflated costs.
- At least 26 hospitals closed in the last five years, with 64% of closures attributed to nonprofit systems, while over 90% of closures followed mergers or ownership changes, according to Pennsylvania Health Access Network data.
- Advocates argue that leaving nonprofits out fails to address important risks, but Gov. Josh Shapiro and other lawmakers remain committed to moving forward, emphasizing the need to prioritize achievable progress over unattainable ideals.
14 Articles
14 Articles
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statecollege.com
Pressure From Powerful Hospital Lobby Prompts Lawmakers to Limit Proposed Merger Crackdown
Spotlight PA is an independent, nonpartisan and nonprofit newsroom producing investigative and public-service journalism that holds power to account and drives positive change in Pennsylvania. Sign up for our free newsletters. HARRISBURG — Democratic lawmakers have narrowed the scope of a proposed crackdown on hospital mergers and acquisitions, focusing it on private equity and excluding nonprofit operators from additional oversight after pushba…
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