The governor and state leaders aim to address financial risks and ensure quality of patient care amid increased involvement of private equity in the healthcare industry.
Janice Herr 10:13 PM, January 26, 2025
staff reporter
Olha Yarynich, contributing photographer
Connecticut leaders introduced a legislative proposal last week that would expand oversight of the state's health care transactions.
Gov. Ned Lamont, Attorney General William Tong, and OHS Commissioner Deidre Gifford introduced the proposal at a press conference last Thursday. If passed, this legislation would create a collaborative process with OHS and the Attorney General's Office that would allow states to review broader transactions and protect the quality, affordability, and access of health care.
“A fundamental rule in health care is that an ounce of prevention is worth a pound of cure, and that's what this bill is about,” Lamont said. “We are not going to be surprised again by some of the financial shenanigans that influenced our prospects if this bill passes.”
Connecticut health care situation is tense and concerns are growing Private equity involvement and financial mismanagement jeopardize patient care. Officials point to incidents such as medical possession of prospects, Here, $500 million Dividends were diverted to private equity owners, leaving hospitals burdened with debt and struggling to stay operational.
Gifford emphasized the urgency for action, saying, “You can't seem to pick up a newspaper these days when you hear about practices that affect the quality, affordability, or accessibility of health care.”
proposed bill It aims to modernize oversight of health care transactions in Connecticut. It expands the scope of transactions that will be subject to scrutiny, including changes in ownership, transfers of assets, and mergers that previously escaped regulatory review.
Under the bill, state attorneys general and OHS would jointly evaluate potential red flag transactions related to antitrust issues, patient care quality, and affordability.
Lamont emphasized the importance of active surveillance, especially in light of Prospect files for bankruptcy.
A key provision of the bill is a new requirement for entities to notify regulators at least 60 days before a transaction occurs, doubling the current review period. This expansion allows for a thorough examination of the financial and operational impacts on the state's health care system. Additionally, the bill includes penalty provisions to hold entities accountable for violations.
Gifford said the law addresses loopholes and gaps in oversight that have allowed questionable practices to go “unchecked.”
“There are many transactions that can harm patients, workers, and communities that the state does not have the ability to review,” she said.
Lawmakers include State Sen. Saud Anwar, co-chair of the Public Health Committee, and State Rep. Christine McCarthy Vahey. expressed support for the billa public hearing is expected later in this legislative session.
Officials are optimistic about the bill's potential but acknowledge the complexities of regulating the evolving health care industry.connecticut general assembly The legislative session is adjourned to June 4th.
