Corporate Crimes Against Health Care Act

The Corporate Crimes Against Health Care Act (HR 7537) creates new legal mechanisms to hold corporate owners and executives accountable when health care corporations experience "triggering events" that harm patients or staff, such as falling behind on payroll for over 90 days, closing, or entering bankruptcy. The bill allows the Attorney General or state attorneys general to claw back compensation (including salaries, bonuses, and equity) from executives and owners during the 10 years before or after a triggering event, with criminal penalties of 1-6 years in prison for violations. It also requires health care entities to report detailed ownership and financial information, prohibits federal health care payments to entities selling assets to real estate investment trusts, and mandates a study on profit-driven practices in health care delivery. This legislation directly affects private equity firms, health care corporations, and their executives who receive compensation during periods of financial distress.