On June 11, 2024, U.S. Sen. Elizabeth Warren introduced legislation aimed at preventing future instances of corporate greed within the healthcare industry. The bill was in response to the bankruptcy filing of Steward Health Care, which Warren’s office claims was a result of corporate malpractices. Warren’s proposed “Corporate Crimes Against Health Care” bill includes new penalties and regulations for healthcare executives who compromise patient safety and access to care. One significant aspect of the bill is the introduction of a criminal penalty that could lead to executives facing up to six years in prison if they engage in looting of healthcare entities, resulting in patient deaths.
Standing opposite Steward’s St. Elizabeth’s Medical Center in Brighton, Warren outlined the details of her proposed legislation. The bill aims to hold healthcare executives accountable for their actions, particularly in cases where their decisions jeopardize the well-being of patients. The controversy surrounding Steward Health Care’s financial management under CEO Ralph de la Torre has raised concerns among legislators, patients, and healthcare workers. A key issue highlighted was the sale of land by Steward, which led to significant debt and financial struggles for the healthcare system.
Warren’s bill includes provisions that empower state attorneys general to recover compensation from private equity executives within a ten-year timeframe. This measure is designed to address cases where looting of healthcare providers by executives results in financial difficulties that impact patient care. The bill also calls for increased reporting requirements for healthcare providers receiving federal funding. As the story continues to develop, updates on the progress of Warren’s bill will be provided.