The bill adds a new subsection to section 1862 of the Social Security Act (Title XVIII) to stop Medicare payments to certain hospitals and skilled nursing facilities. Under the new rule, Medicare cannot pay a facility that is owned or controlled by a "covered firm" or an affiliate of a covered firm. "Covered firm" means a private equity fund, a corporation owned or controlled by a private equity fund, or a real estate investment trust (REIT). The bill defines "affiliate," "control" (including direct or indirect power over management or assets and ownership of 10% or more of voting securities), "corporation," "private equity fund," and points to the tax code definition for REITs. Facilities owned or controlled by a covered firm on the date the law is enacted are exempt from the payment ban for three years after enactment. Facilities found to violate the ban are entitled to notice and a hearing under section 1128(f). A covered firm or its affiliate that owns a violating facility is jointly and severally liable for any penalty or obligation the facility receives because of the violation.
No publicly available information on estimated costs or savings is included in the bill text. The bill does state that covered firms can be held jointly and severally liable for penalties or obligations of violating facilities, but it does not specify dollar amounts or budgetary estimates.
No publicly available information.
No publicly available information.