A bill is working its way through Congress that could have an impact on health care providers, particularly those owned by private equity firms.
On Wednesday, the House Ways and Means Committee has scheduled a markup of new legislation that would require public disclosure of a range of information surrounding certain health care companies.
This legislation is particularly of interest to private equity groups and other investors that have long seen a large volume both of capital and deal count in the health care industry.
Private equity has grown in health care and life sciences
The information would require the following be disclosed publicly if the bill passes:
- Amounts received as reimbursement for any item or service under Medicare.
- Amounts received as reimbursement for any item or service under a state plan (or waiver of such plan) under Medicaid.
- Negotiated rates for services with respect to any provider of health insurance.
- Other amounts received for the provision of medical care, including a separate statement from any provider of health insurance.
- The first date the reporting person (or a related person) controls the specified medical care provider.
- The value of all consideration received in exchange for the interest disposed of.
- Other amounts paid to the reporting person or any person related to the reporting person.
The legislation comes amid rising concern over surprise billing, which occurs when a person visits a health care provider and receives an unexpectedly large bill.
This can happen when a provider that delivers health care services is not part of the patient’s health insurance network and the insurer does not cover a substantial portion the service, nor does the patient receive in-network negotiated rates.
Frank Pallone, a Democrat from New Jersey and chairman of the House Ways and Means Committee, and Greg Walden, a Republican from Oregon and the committee’s ranking member, sent a letter to three private equity firms in December expressing concern about the issue and requesting information about why it occurs.