Congress moves to bar private equity from Medicare hospital profits
H.R. 7920 — Take Back Our Hospitals Act of 2026 · Filed by Mary Scanlon (D-PA) · 12 cosponsors · Introduced Mar 12, 2026 · Referred to committee
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What it does
This bill bars Medicare from paying hospitals and skilled nursing facilities owned or controlled by private equity firms, private equity-backed corporations, or real estate investment trusts (REITs). Existing facilities have a 3-year grace period to divest; new violations trigger joint liability on the parent firm. The bill aims to prevent financial firms from extracting value from Medicare-dependent healthcare providers.
Why we flagged it
The bill's core mechanism is a categorical exclusion from Medicare reimbursement based on ownership type, not a subsidy, tax provision, or procedural reform. It is a direct regulatory bar on a class of financial entities.
What the text implies
- The 3-year grace period may trigger a wave of rapid divestitures or restructurings by PE-backed hospital operators, potentially creating short-term operational disruption or fire-sale acquisitions by other entities.
- Joint and several liability on parent firms may incentivize PE funds to exit healthcare entirely, reducing capital availability for hospital acquisitions but also potentially reducing leverage-driven cost-cutting.
The full analysis lists 5 implications of this text.
Who it affects
The bill restricts a class of financial owners whose business model often prioritizes debt extraction and cost-cutting over patient care and community access. Ordinary citizens benefit by reducing the risk that their Medicare-funded hospital care is managed by entities optimizing for financial returns rather than health outcomes.