Massachusetts Expands Health Care Oversight with New Regulations

Massachusetts has expanded its regulatory supervision of medical transactions by imposing a false claim on medical owners and investors for changes, including the failure of the violation. January 8, 2025, Governor Maura Healey has signed the law H.5159, the act of strengthening the market review process (law). Among other issues, the law aims to strengthen the supervision of private stock investors and related entities in the medical industry, including investigating and expanding the right to executions by Massachusetts, which associated with medical activities. 。 The law also intends to fill the perceived gap in regulatory monitoring. Many people believe that by directly working on the regulations of the ownership of a profitable medical institution and private equity, it is contributing to the steward health bankruptcy throughout Massachusetts as a whole and the closing of related hospitals.

The following laws provide the Massachusetts State Health Policy Committee (HPC), the Health Information Center (CHIA), and the authority of the Corporate Secretary of Justice (AGO), and include the extension of existing monitoring of HPC. The authority and extension of the Federal State’s false claim (MA FCA) for the owner and investors of the offenders and the investor who supervise the investors and related entities. This law also includes countless changes that affect the healthcare industry. Enhance regulatory monitoring for private equity, pharmacy benefits, real estate investment trusts, management service organizations (MSO), and other industry participants.

Expansion of HPC and AGO authority based on law:

• Provide or establish a new definition of relevant entity involved in private equity pelation [1]:
  • The real estate investment trust “Healthcare Real Estate Investment Trust” defined in 26usc §856 consists of real estate, which is held in connection with the use or operation of providers or providers.
  • “Private equity company”, a company that collects capital investment from individuals or entities, or a parent company or another entity, a business that the company is fully or partially managed or managed, a provider or provider organization Management service organizations directly or through indirect ownership share; but private equity companies do not provide venture capital companies only for startups and other early companies.
    “Important stock investors”, (i) Private Corporation with financial interests in providers, providers, or management service organizations. Or (II) Investor, investor groups, or other entities with direct or indirect possession of capital, shares, or profits in capital, shares, shares, or profits. However, “important stock investors” do not include funds only for startups or early -stage companies for venture capital companies.
    “Management service organization” is a company that provides management or management services to providers or providers for rewards.
• Fix the configuration, necessary expertise, and responsibilities for the appointment of the HPC Board [2]。 The Board of Directors will continue to be composed of 11 members, but the insurance committee is currently expertise in hospitals and hospital systems, and have expertise in health and annovation such as pharmaceuticals, biotechnology, and medical equipment. I became an individual. However, HPC does not require a membership of the Secretary of the Secretary, a primary care physician, and a health insurance buyer representing the management, and for financial benefits. Finally, the auditor is no longer responsible for the appointment of the HPC Board. All members of the Ministry of Health and Welfare and the Secretary of the Insurance will be appointed by the governor or justice. These changes may reflect the priority of hospital management, new medical leather, and healthcare insurance regulation monitoring.
• We will develop HPC notifications for the material change process [3]。 As needed, all providers or providers need to provide “material changes” notifications more than 60 days before the proposed change date.
  • Only the legal notification of the material change report requirements is covered only.
    • Merge or acquire hospital or hospital system.
    • The merger, acquisition, or partnership of providers, providers, providers and career companies.
    • Acquisition of unpaid provider organization. and
    • With the merger or acquisition of a provider organization, the provider organization will have a majority of market share in a specific service or region. [4]。
  • The Act expands the above reference method that requires a “important change” report requesting a notification to the relevant government agency, and requires the following as follows.
    • Significant expansion of the abilities of providers or provider organizations.
    • Transactions, including important stock investors that change the ownership or management of providers or provider organizations.
    • Including the arrangement of a real estate sales leaseback, a major acquisition, sales, or transfer of assets that are not limited to these. and
    • Converts a provider or provider organization from a non -profit organization to a profit organization.
  • The law also changes the thrills of the current important change report for the merger or acquisition of a provider organization. As a result, the provider organization Almost in the majority The specific service or regional market share is whether the standard is whether the provider organization has a “specific service or dominant market share in the region” (“almost a majority”.
  • Adoption of implementation regulations. Although the law does not include financial standards for reporting, the law instructs the HPC to adopt a regulation to manage sections, review the cost of action and the impact of the market, and adjust the annual adjustment based on inflation. Is instructed to adopt the submitted value submitted by regulation. [5]。
• As follows, we will expand the HPC cost and market impact review process.
  • HPC will submit documents and information in connection with important stock investors and other related parties, as well as submitted stock investors in relation to material changes, cost and market impact. Therefore, there is a possibility that other involved parties are needed. [6]。
  • HPC may need to send specific information Regarding the capital structure of important stock investors, general financial status, ownership and management structure, audited financial statements.
  • HPC may need to send data after transaction Information for up to 5 years from the date of change of material. Such data collection greatly expands power and tasks, including the ability to evaluate the impact after the transition.
  • You can also review the factors that HPC considered as part of the cost and market impact review [7]:
    • The size and market share of important stock investors of corporate companies, providers, or providers.
    • The catalog of the healthkequer source maintained by DPH. and
    • Related data or reports from the Health Resource Planning Bureau.
• We will expand the scope of surveys on HPC cost, price, and cost tendency as follows. [8]:
  • HPC cost trends in the HPC costs include an important stock investor, healthcare REIT, and MSO -related impact on cost, price, and cost trends. Stakeholders in these organizations related to provider organization need to testify in HPC’s annual cost trendy hearing. Or, including dividends paid to provider organizations, investors, basic salary, incentive, bonus, stock options, postponement rewards, benefits, benefits, and conditional payments, but are not limited to these. 。 Alternatively, it is managed overall or partially by important stock investors, health care real estate investment trusts or management service organizations. “
  • HPC uses new data collected as part of the registered provider organization process. The law has revised this process to request important stock investors in ownership, governance, and organizational information, real estate investment trusts in health care, and submissions from management service organizations.

Considering the wide -range and radical properties of the change, additional regulations and guidance should be expected.

[1] MGL 6D is a culture. 1.

[2] MGL 6D is a culture. 2.

[3] MGL 6D, §13 is a culture.

[4] I quote it to the existing NMC form

[5] MGL 6D is a culture. 13.

[6] MGL 6D is a culture. 13.

[7] MGL 6D is a culture. 13.

[8] MGL 6D, SS is a culture. 8 and 11.