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Pressure From Powerful Hospital Lobby Prompts Lawmakers to Limit Proposed Merger Crackdown

  • Democratic lawmakers have scaled back a proposed 2025 regulation targeting hospital mergers and buyouts in Pennsylvania, limiting oversight to private equity-owned facilities and excluding nonprofit hospitals from additional scrutiny.
  • The exclusion came after lobbying efforts by HAP, a influential group representing 235 hospitals across Pennsylvania, including large nonprofit organizations like UPMC.
  • HAP spent $1.1 million on lobbying and routinely donates hundreds of thousands to state lawmakers, while critics link consolidation to higher prices without care improvements.
  • State Rep. Lisa Borowski reintroduced a bill last week covering only for-profit hospital mergers, banning sale-leaseback deals common among private equity owners known for financially unstable acquisitions.
  • The bill is under negotiation amid a divided government, with Governor Shapiro supporting wider measures including nonprofits, emphasizing results over perfection and opposing lobbyist influence.
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Pressure from powerful hospital lobby prompts lawmakers to limit proposed merger crackdown

New legislation aims to restrict private equity's influence in hospital mergers, excluding nonprofits, after pressure from an industry lobby.

·Harrisburg, United States
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sta.si broke the news in on Wednesday, May 21, 2025.
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