Corporate Crimes Against Health Care Act

Corporate Crimes Against Health Care Act

This bill establishes criminal violations and civil penalties for private equity
firms or investment companies that (1) take a controlling interest in a health
care organization, and (2) contribute to a triggering event that results in the
injury or death of a patient under the care of the acquired health care
organization.

A triggering event occurs if the acquired health care organization (1) closes;
(2) is behind on rent payments for more than 90 days; (3) defaults on a loan for
more than 90 days; or (4) is behind, at any time, on salary payments beyond
specified limits.

These violations also apply to conduct that contributes to a triggering event by
a director, officer, shareholder, or person with the ability to control the
acquiring firm, company, or acquired health care organization.

Additionally, the bill authorizes the Department of Justice and state attorneys
general to claw back compensation (e.g., salaries of executives of the acquiring
firm, company, or health care organization) paid by the health care organization
during the 10-year period before and after a triggering event occurs if an
aggravating circumstance is established.

Violators of these provisions are subject to a prison sentence of one to six
years and civil penalties of not more than five times the amount of any
clawback.

The bill prohibits an entity from receiving payments from a federal health care
program if the entity sells assets or offers assets as collateral to a real
estate investment trust (REIT).

The bill also eliminates certain tax benefits for REITs.