Hospital Profit Transparency and Fairness
Massachusetts hospitals and large health care corporations are putting profits before patients with CEO’s making millions while patients and communities serviced by those hospitals are being put at risk.
Most hospitals in Massachusetts receive more than half their revenues from taxpayers. Yet there is no way for the public and policy makers to accurately understand how those taxpayer dollars are being allocated and spent.
While these taxpayer subsidies are intended to provide health care services to our communities, too many of these hospital corporations have been cutting services and staff, while posting enormous profits and/or hiding those profits in off-shore accounts undisclosed to the public.
We now have a hospital system of “haves and have nots” that has resulted in the loss of essential services for some communities, particularly those servicing the poor and most vulnerable.
Meanwhile, these same corporations are paying their CEOs enormous seven figure salaries and compensation packages when the research shows there is absolutely no correlation between CEO compensation and the quality and safety of care these hospitals provide.
We are engaging in a campaign to ensure greater transparency of hospital finances, appropriate utilization of our taxpayer dollars to ensure safe patient care and a fair distribution of health care resources to meet the needs of patients and communities in the Commonwealth.
To that end we are promoting a new law―The Hospital Profit Transparency and Fairness Act (S623/H979) – that will require hospitals to be transparent about their financial holdings and to limit and claw back excessive profits to ensure taxpayer dollars are dedicated exclusively to safe patient care and necessary services for all communities in the Commonwealth.
What the HPTFA Will Do:
- Requires any hospital receiving public, taxpayer dollars to disclose all financial assets, including those held in offshore accounts.
- Assesses a clawback penalty on any hospital receiving a certain amount of taxpayer dollars that has an annual operating margin above a specific, predetermined cap.
- Assesses a clawback penalty on any hospital receiving a certain amount of taxpayer dollars that provides a compensation package for its CEO that is greater than 100 times that of hospital's lowest paid employee.
- Establishes a Medicaid Reimbursement Enhancement Fund (MREF). The MREF will be funded by the assessments and used to increase Medicaid reimbursement rates to eligible hospitals to ensure access to essential health care services.