Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1398 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3584 FILED ON: 1/17/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 1398
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James J. O'Day
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to hospital profit and fairness.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:James J. O'Day14th Worcester1/17/2025Samantha Montaño15th Suffolk2/24/2025James B. EldridgeMiddlesex and Worcester3/3/2025Daniel M. Donahue16th Worcester3/7/2025Jay D. Livingstone8th Suffolk3/7/2025Lindsay N. Sabadosa1st Hampshire3/10/2025 1 of 3
16	16	HOUSE DOCKET, NO. 3584 FILED ON: 1/17/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 1398
18	18	By Representative O'Day of West Boylston, a petition (accompanied by bill, House, No. 1398)
19	19	of James J. O'Day and others relative to civil penalties for profits and excessive compensation at
20	20	certain publicly funded hospitals. Health Care Financing.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Fourth General Court
24	24	(2025-2026)
25	25	_______________
26	26	An Act relative to hospital profit and fairness.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Chapter 111 of the General Laws is hereby amended by inserting after
30	30	2section 244 the following section:-
31	31	3 Section 245. Hospital Profit and Fairness
32	32	4 Definitions
33	33	5 (a) As used in this section, the following words shall have the following meanings:-
34	34	6 “Facility”, a hospital licensed under section 51 of chapter 111 of the General Laws, the
35	35	7teaching hospital of the University of Massachusetts medical school, any licensed private or
36	36	8state-owned and state-operated general acute care hospital, an acute psychiatric hospital, an acute
37	37	9care specialty hospital, or any acute care unit within a state operated healthcare facility. This
38	38	10definition shall not include rehabilitation facilities or long-term care facilities. 2 of 3
39	39	11 “Compensation”, salary; bonus payments, whether based on performance or otherwise;
40	40	12deferred compensation; incentive payments; severance payments; loans to be repaid on terms,
41	41	13including interest, less burdensome than market rate; value of use of facility-provided vehicles,
42	42	14housing or other perquisites not available to all employees; stock or stock options and any
43	43	15dividends or other incidents of the ownership thereof.
44	44	16 "Minimum facility compensation", the value of the annual compensation received by a
45	45	17full time employee of a facility earning minimum wage as set under G.L. c. 151 1, or if none,
46	46	18then the lowest-paid full time employee.
47	47	19 (b) If in any fiscal year a facility that accepts funds from the Commonwealth, and whose
48	48	20patient mix is less than 60% government payer, reports to the Center for Health Information and
49	49	21Analysis an annual operating margin, including amortization and depreciation, that exceeds 8%,
50	50	22that facility shall be subject to a civil penalty equal to the amount by which the annual operating
51	51	23margin exceeds 8%.
52	52	24 (c) If the chief executive officer of a facility that accepts funds from the Commonwealth
53	53	25receives annual compensation greater than 50 times the minimum facility compensation, the
54	54	26facility shall be subject to a civil penalty equal to the amount by which the Chief Executive
55	55	27Officer's annual compensation exceeds 50 times the value of the minimum facility compensation.
56	56	28 (d) Each facility that accepts funds from the Commonwealth shall report annually to the
57	57	29Center for Health Information and Analysis all financial assets owned by the facility, including
58	58	30those held in financial institutions outside the United States or invested outside the United States.
59	59	31Unless prohibited by other law, the Center for Health Information and Analysis shall make this
60	60	32information public within 7 calendar days of receipt. 3 of 3
61	61	33 (e) There is hereby established on the books of the Commonwealth a fund to be known as
62	62	34the Medicaid Reimbursement Enhancement Fund. Any penalties collected as a result of
63	63	35violations of this act shall be deposited into this fund, and subject to appropriation, shall be used
64	64	36to improve Medicaid reimbursement to eligible hospitals.
65	65	37 (f) This act shall not be construed to impair any contract or agreement in effect as of
66	66	38January 1, 2025.
67	67	39 (g) The Health Policy Commission shall promulgate regulations governing the
68	68	40implementation, operation, and enforcement of this act.
69	69	41 (h) Severability. The provisions of this act are severable, and if any clause, sentence,
70	70	42paragraph or section of this law or an application thereof shall be adjudged by any court of
71	71	43competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the
72	72	44remainder thereof but shall be confined in its operation to the clause, sentence, paragraph,
73	73	45section or application adjudged invalid and such clause, sentence, paragraph, section or
74	74	46application shall be reformed and construed so that it would be valid to the maximum extent
75	75	47permitted.