S. 4085

119 S4085 IS: Take Back Our Hospitals Act of 2026
 U.S. Senate
 2026-03-12
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 II  119th CONGRESS  2d Session  S. 4085  IN THE SENATE OF THE UNITED STATES   March 12, 2026   Mr. Murphy  (for himself,  Mr. Blumenthal , and  Mr. Merkley ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend title XVIII of the Social Security Act to prevent hospitals or skilled nursing facilities that are owned by certain firms from participating in the Medicare program.
1.
Short title
This Act may be cited as the   Take Back Our Hospitals Act of 2026  .
2.
Preventing hospitals and skilled nursing facilities owned by certain firms from participating in Medicare
Section 1862 of the Social Security Act ( 42 U.S.C. 1395y ) is amended by adding at the end the following new subsection:
(p)
Prohibition on payments to hospitals and skilled nursing facilities owned by certain firms
(1)
In general
(A)
Prohibition
No payment may be made under this title to a hospital or skilled nursing facility that is owned or controlled by a covered firm or an affiliate of a covered firm.
(B)
Exception
If, on the date of enactment of this subsection, a hospital or skilled nursing facility is owned or controlled by a covered firm or an affiliate of such a firm, such hospital or skilled nursing facility shall not be considered in violation of subparagraph (A) until the date that is 3 years after such date of enactment.
(2)
Notice, hearing, and judicial review
Any hospital or skilled nursing facility found to be in violation of paragraph (1) shall be entitled to reasonable notice and opportunity for hearing as described in section 1128(f).
(3)
Joint and several liability
A covered firm or an affiliate of such a firm that owns or is an affiliate of a hospital or skilled nursing facility that is in violation of paragraph (1) shall be jointly and severally liable for any penalty or obligation such hospital or skilled nursing facility receives for such violation.
(4)
Definitions
In this subsection:
(A)
Affiliate
The term  affiliate  means an entity that controls, is controlled by, or is under common control with another entity.
(B)
Control
(i)
In general
The term  control  means to possess the power, directly or indirectly, to direct, or cause the direction of, the management, administrative functions, assets, or policies of an entity through owning voting securities in such entity, contracting with such entity (except for contracting with such entity for goods or non-management services), or other similar means, as determined by the Secretary.
(ii)
Voting securities
A person shall be considered to control an entity if such person directly or indirectly owns, has rights over, or holds with the power to vote, 10 percent or more of the voting securities of such entity.
(C)
Corporation
The term  corporation  means—
(i)
a joint-stock company;
(ii)
a company or partnership association organized under a law that makes only the capital subscribed or callable up to a specified amount responsible for the debts of the company or partnership association, and includes a limited partnership and a limited liability company;
(iii)
a trust; or
(iv)
an association that—
(I)
possesses the power or privilege of a private corporation under State law; and
(II)
does not possess the power or privilege of a sole proprietorship or partnership under State law.
(D)
Covered firm
The term  covered firm  means—
(i)
a private equity fund;
(ii)
a corporation that is owned or controlled by a private equity fund; or
(iii)
a real estate investment trust.
(E)
Private equity fund
The term  private equity fund  means a person who—
(i)
would be considered an investment company under section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 ) but for the application of paragraph (1) or (7) of subsection (c) of such section; and
(ii)
directly, or through an affiliate, acts as a control person of such company.
(F)
Real estate investment trust
The term  real estate investment trust  has the meaning given such term in  section 856  of the Internal Revenue Code of 1986.
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