Sponsors (5)
Creates criminal/civil penalties and clawbacks for unjust enrichment tied to health care change‑in‑control events, changes REIT and 199A tax rules, adds HHS reporting, and orders an HHS OIG study.
Official title: Prevent exploitative private equity practices, and for other purposes.
Introduced February 11, 2026 by Elizabeth Warren · Last progress February 11, 2026
The bill increases accountability, transparency, and tax/ payment safeguards around health-care ownership and REIT activity—benefiting patients and regulators—but does so by imposing significant reporting, tax, and penalty burdens that could raise costs, deter investment, and strain vulnerable providers.
Patients harmed by hospital corporate conduct gain stronger legal accountability and recovery pathways through clawbacks, civil suits, and criminal penalties that deter executives whose actions contribute to injury or death.
Hospitals that retain real-estate control (i.e., avoid REIT transfers) remain eligible for Medicare/Medicaid payments, helping preserve funding continuity and access to care for patients (including in vulnerable populations).
Patients and the public gain greater transparency about provider ownership, affiliations, and payments (including value-based program flows), making it easier to spot conflicts of interest and informedly choose providers.
Hospitals, physician practices, and health systems face substantial compliance, reporting, and financing disruptions (lost federal reimbursements for REIT transfers, new annual ownership reporting, and tax changes) that could raise costs, increase administrative burden, and threaten financially fragile providers—especially in rural areas.
Executives, investors, and some firms face heavy civil penalties and criminal exposure under broad 'unjust enrichment' and 'contributing' standards, risking overcriminalization and deterring investment into health care companies.
REITs, TRSs, and investors could lose special tax treatment and portions of the QBI deduction, raising tax liabilities, reducing investor returns, and potentially shrinking private capital available for health-care real estate.
Based on analysis of 7 sections of legislative text.
Creates new federal criminal and civil penalties and a statutory clawback for corporate “unjust enrichment” tied to change‑in‑control events at health care companies that lead to patient death, injury, or other triggering events; requires recovered funds to address employee pension/salary shortfalls and harmed communities. Changes tax rules for REIT-related health care investments and the 199A pass-through deduction so certain REIT/health‑care income is excluded; adds HHS reporting requirements on ownership and control for many entities that contract with or invest in health care providers; and directs an HHS OIG study of profit‑driven practices in health care delivery and their effects on patients and federal programs.