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Senator Warren Proposes Bill on Corporate Crimes Against Healthcare – NBC Boston

U.S. Senator Elizabeth Warren introduced legislation Tuesday morning aimed at averting future instances of “corporate greed” in the healthcare landscape, like the kind that her office says led Steward Health Care to file for bankruptcy.

Standing across the street from Steward’s St. Elizabeth’s Medical Center in Brighton, Warren outlined her Corporate Crimes Against Health Care bill, which would implement new penalties and guardrails for healthcare executives who threaten patient safety and access to care endangerment – including a new criminal penalty that could see executives jailed for up to six years.

That penalty would apply to those who “loot healthcare facilities such as nursing homes and hospitals, if that plunder results in the death of a patient,” Warren’s office said.

Lawmakers, patients and healthcare professionals are grappling with the results of Steward’s financial management under CEO Ralph de la Torre. Steward sold the land on which the Massachusetts hospitals sit in 2016, a deal that has since saddled the system with massive debt as executives struggled to keep up with payments to its landlord, Medical Properties Trust, and to suppliers.

Warren’s proposal would give attorneys general the authority to claw back all compensation paid to private equity executives within a 10-year period, before or after an acquired health care provider “experiences serious, avoidable financial hardship as a result of that depredation.” her office said. The bill also includes increased reporting requirements for health care providers receiving federal funding.