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Sens. Warren, Markey propose bill that would lead to prison time for 'corporate greed' in health care

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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. In 2016, Steward sold the land where its eight Massachusetts hospitals are located to Medical Properties Trust, a real estate investment trust. The transaction resulted in the hospitals struggling with massive debt that ultimately forced Steward into bankruptcy.

“My Corporate Crimes Against Health Care Act would prevent what happened with Steward from ever happening again,” Warren said in a statement. “When private equity gets hold of health care systems, it is literally a matter of life and death, so if you drive a hospital like Steward into bankruptcy, putting patients and communities at risk, you should face real consequences.”

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Sen. Warren delivered remarks in front of Steward’s St. Elizabeth’s Medical Center in Brighton. (AP Photo/Jacquelyn Martin, File)

The bill would create a new criminal penalty to put executives in prison for up to six years if they loot health care entities, including nursing homes and hospitals, if the looting leads to a patient’s death.

It would authorize state attorneys general and the U.S. Justice Department to claw back all compensation, including salaries, to private equity and portfolio company executives within a 10-year period before or after an acquired health care firm experiences serious, avoidable financial difficulties due to that looting.

Additionally, the legislation would authorize an associated civil penalty of up to fives times the clawback amount and require health care providers receiving federal funding to publicly report mergers, acquisitions, changes in ownership and control and financial data, including debt and debt-to-earnings ratios.

There would also be a requirement for a Health and Human Services Office of the Inspector General report to be sent to Congress detailing the “harms of corporatization” in health care.

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“What Dr. de la Torre, Cerberus Capital Management and Medical Properties Trust did to Steward-owned hospitals in Massachusetts and across the country is unforgivable,” Markey said in a statement. “They promised to improve health care, but instead traded lives and livelihoods for profit. Private equity firms and their enablers will continue to steal from America’s health care system to feed their corporate greed unless we stop them. We need guardrails now to guarantee CEO wealth doesn’t come before the public’s health.”

SUPREME COURT RULES IN FAVOR OF NATIVE AMERICAN TRIBES IN HEALTH CARE FUNDING DISPUTE WITH GOVERNMENT

Sen. Markey said there need to be guardrails to “guarantee CEO wealth doesn’t come before the public’s health.” (Photographer: Eric Lee/Bloomberg via Getty Images)

Private Equity Stakeholder Project policy director Chris Noble said in a statement that private equity firms have “made a killing out of looting vulnerable hospitals and putting patients and healthcare systems at risk.”

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“Grounded in the common-sense idea that U.S. healthcare systems should prioritize safeguarding our long-term health over short-term profits, this legislation is a necessary and timely solution to that problem,” he said.

Massachusetts Nurses Association president Katie Murphy also praised the Corporate Crimes Against Health Care Act.

“As an organization representing frontline nurses and health professionals working in facilities owned and operated by private equity firms and other for profit  providers, we have witnessed how the commodification of health care and the strive for profit taking by these firms has undermined the safety of the patients and communities served by those facilities, and as such, we applaud and support Senator Warren’s legislation that will hold these firms accountable for their misdeeds and corporate malfeasance, to claw back those resources taken from our patients and our communities to ensure those resources go to the care of patients and not their exploitation,” Murphy said in a statement.

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Pittsburg, PA

Off-site parking remains a critical part of Pittsburgh International Airport’s operations

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Off-site parking remains a critical part of Pittsburgh International Airport’s operations






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Connecticut

Fairfield police cancel Jennings Beach Carnival over public safety concerns

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Fairfield police cancel Jennings Beach Carnival over public safety concerns


Fairfield police announced that the Jennings Beach Carnival has been canceled for Saturday and Sunday.

The department made the announcement on their Facebook page and cited public safety concerns during Friday night’s event.

According to police, officers were called in large numbers, with help from the Bridgeport Police Department, to manage “unusually large and disorderly crowds.” Police said the crowd was made up mostly of unsupervised juveniles.

Police said that throughout Friday evening, there were multiple incidents where attendees believed shots had been fired or that fights had broken out, which led to “panic, chaos, and crowd surges.”

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Officers who were at the scene already looked into the reports and found no evidence that shots had been fired.

According to police, the size and movement of the crowds caused some families to be separated and required officers to reconnect parents with their children. Police said they also got numerous reports of fights and disturbances in different areas of the Jennings Beach grounds and parking lots.

Large groups also began running in multiple directions, including some into surrounding neighborhoods, police said. Crowds numbering in the hundreds also gathered at the Chick-fil-A and surrounding businesses, where other fights broke out, and people illegally congregated, needing more police and help from the Connecticut State Police.

Police said the decision to cancel the carnival was made in the interest of public safety and supported by the McKindley PTA, which sponsored the carnival.

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Maine

How hedge fund fire trucks are affecting Maine towns

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How hedge fund fire trucks are affecting Maine towns


Calais has been seeking federal funds for a new ladder truck for years. It hasn’t worked out.

At 41 years old, the fire department’s current truck has been in service for about two decades longer than industry standards recommend. The department can no longer find parts for it but can’t replace it with town money alone. New ones run more than $1 million, and the budget for the entire city is roughly $6.5 million per year.

“We don’t want to burden the taxpayers with that, because I don’t think they can [afford] it, to be honest with you,” Fire Chief William Lee said.

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Fire engine prices have skyrocketed since the pandemic, rising much faster than inflation. Maine towns struggling under heavy tax burdens are responding by holding onto aging trucks for longer and struggling to plan for new purchases that often take several years to process.

The price spike is the culmination of industry consolidation, ever-changing safety and emissions standards and President Donald Trump’s tariffs. One Maine city has even joined a national legal effort alleging a price-fixing scheme among a trio of dominant manufacturers.

Fire engines are typically made custom after departments outline their specific needs. In Maine, trucks need to fit in old stations and maneuver narrow, winding streets. The Hancock County town of Surry has put in an order for one on a standard chassis to save time.

The order cannot be placed until this summer. Fire Chief Bryan McLellan said he’s hoping to wait about 18 months for delivery. If material costs rise dramatically during that time, the final price could go up before the truck gets to the coastal town.

Surry’s effort was boosted by a $492,000 earmark sponsored by U.S. Rep. Jared Golden, a Democrat from Maine’s 2nd District, in this year’s round of federal funding bills. Even with that help and local matching funds, it’s not enough for a top-of-the-line engine.

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Other towns are looking for 2027 earmarks from Maine’s delegation, which is helmed by Sen. Susan Collins, a Republican and top appropriator. Golden made a similar request for Orland. The nearby town of Penobscot is trying for Golden’s help. China, in Kennebec County, made a similar request to independent Sen. Angus King.

Many communities in Maine and across the country have voiced outrage over industry consolidation. Fire truck producers have been bought up repeatedly by private equity firms in recent years. Up to 80% of the U.S. fire truck supply now comes from three companies: Oshkosh Corp., REV Group, and Rosenbauer America.

Augusta sued them last year, alleging in a 66-page filing that they colluded to fix prices while raking in billions in profit. Executives have denied engaging in anti-competitive business practices. The federal lawsuit in Wisconsin, where two of the manufacturers are based, is still active.

Augusta’s complaint tells the story of market consolidation, including the Great Recession-era private equity takeover of distressed manufacturers that had once competed and were turned into REV Group. The city said it is operating two trucks that are more than 30 years old.

City officials declined to comment on the pending litigation, and the city’s fire chief could not be reached for comment.

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Back in Surry, the town is aiming to keep its new truck compliant with the latest industry standards, which are frequently updated to include advanced safety features. The truck’s manufacturer will have to add many new safety tools, like seatbelt sensors. Those requirements add cost to replacing the department’s old truck, which lacks shoulder straps, anti-lock brakes, and airbags.

“When we’re having volunteers put their time and their lives on the line to protect their communities, it’s really important that we’re giving them a vehicle to operate that’s safe for them,” McClellan said.

The newest truck in Calais was made in 2005. It is also reaching the end of the industry standard 15 to 25 year service life and will soon need to be replaced. The city is planning to apply once again for fire truck funding through a federal program that has not come through in the past three years and is now stalled due to the partial government shutdown.

As costs continue to rise and backlog continues to plague truck manufacturers, it’s unlikely Calais will be able to replace a truck anytime soon.

“Communities just can only sustain so much, and these prices are just getting out of reach,” Lee said.

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Daniel O’Connor is a Report for America corps member who covers rural government as part of the partnership between the Bangor Daily News and The Maine Monitor, with additional support from BDN and Monitor readers.



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