Massachusetts law aims to prevent repeat of Steward Health Care crisis
CBSN
Private equity firms that invest in hospitals will now face increased oversight in Massachusetts under a new law signed by Gov. Maura Healey on Wednesday, after the scandal-plagued ownership of nine hospitals in the state exposed significant risks to patient care.
The new law would increase transparency in the opaque financial dealings between hospitals and investment groups that own them. Healey signed it right before the close of the year's state legislative session.
The law will increase financial penalties for hospitals, private equity investors, real estate investment trusts and other entities for failing to submit required financial reporting to the state on time. Fines for not submitting information on time will soar from $1,000 to $25,000 per week, and the law also removes the annual cap of $50,000.
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