HR7920-119

In Committee

Take Back Our Hospitals Act of 2026

119th Congress Introduced Mar 12, 2026

Summary

What This Bill Does

The Take Back Our Hospitals Act prohibits Medicare payment to a hospital or skilled nursing facility owned or controlled by a covered firm or one of its affiliates. Covered firms include private equity funds, corporations owned or controlled by private equity funds, and real estate investment trusts.

A facility already under covered ownership on enactment receives three years before the payment prohibition treats it as violating the rule. A facility found in violation is entitled to reasonable notice and an opportunity for a hearing under existing federal exclusion procedures.

A covered firm or affiliate that owns, controls, or is affiliated with a violating facility is jointly and severally liable for the facility's penalties and obligations. Control includes direct or indirect power over management, administration, assets, or policy through voting securities, management contracts, or similar means determined by HHS. Holding at least 10 percent of voting securities is deemed control. Ordinary contracts for goods or non-management services are excluded from the contract-based control language.

The bill conditions Medicare payment; it does not directly ban ownership under all law, govern Medicaid payment, or require immediate divestiture on enactment. Covered owners can leave the ownership or control position during the transition, and affected facilities retain notice and hearing rights.

Who Benefits and How

Medicare beneficiaries may gain protection from ownership structures Congress associates with financial extraction or care risk. Independently owned hospitals and skilled nursing facilities gain a competitive advantage in Medicare participation. Clinicians and facility staff may face less pressure from covered ownership if facilities divest. Medicare oversight officials gain a clear ownership-based payment rule and recourse against owners for unpaid penalties.

Who Bears the Burden and How

Private equity funds, private-equity-controlled companies, real estate investment trusts, and affiliates must divest, relinquish control, or accept loss of Medicare payment after the transition. Affected hospitals and nursing facilities risk substantial revenue loss and must document ownership and control. Investors and management contractors face a broad 10-percent and indirect-control test plus joint liability. CMS must identify covered relationships, provide hearings, stop payment, and pursue obligations. Communities may face access risk if an affected facility closes instead of restructuring.

Key Provisions

  • Bars Medicare payment to facilities under covered ownership or control.
  • Covers private equity funds, controlled corporations, and REITs.
  • Extends the rule to affiliates.
  • Gives facilities already covered at enactment a three-year transition.
  • Provides reasonable notice and an opportunity for a hearing.
  • Makes covered owners and affiliates jointly liable for obligations.
  • Deems ownership of 10 percent of voting securities to be control.
  • Excludes ordinary goods and non-management contracts from contract control.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Prohibits Medicare payment to hospitals and skilled nursing facilities owned or controlled by private equity funds, private-equity-controlled corporations, real estate investment trusts, or their affiliates, with a three-year transition for existing ownership, hearing rights, and joint liability for covered owners and affiliates.

Key Policy Areas

Medicare Provider Participation, Hospital Ownership, Skilled Nursing Facilities, Private Equity in Health Care, Health-Care Corporate Liability

Primary Purpose

Prohibits Medicare payment to hospitals and skilled nursing facilities owned or controlled by private equity funds, private-equity-controlled corporations, real estate investment trusts, or their affiliates, with a three-year transition for existing ownership, hearing rights, and joint liability for covered owners and affiliates.

Policy Domains

Medicare Provider Participation Hospital Ownership Skilled Nursing Facilities Private Equity in Health Care Health-Care Corporate Liability

Section 2 Medicare payment prohibition for covered ownership

Identified Gains
  • Medicare patients in affected facilities
  • Independent hospitals competing for Medicare patients
  • Independent nursing facilities competing for patients
  • Clinicians working after covered-owner divestiture
  • CMS enforcement teams collecting owner liabilities
  • Communities retaining restructured facilities
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Medicare patients in affected facilities:
Communities retaining restructured facilities:
CMS enforcement teams collecting owner liabilities:
Clinicians working after covered-owner divestiture:
Independent hospitals competing for Medicare patients:
Independent nursing facilities competing for patients:
Identified Costs
  • Private equity funds owning hospitals
  • Real estate investment trusts owning facilities
  • Private-equity-controlled hospital corporations
  • Affiliates jointly liable for facility penalties
  • Hospitals losing Medicare payment eligibility
  • Skilled nursing facilities losing Medicare payments
  • CMS ownership-review staff
  • Patients exposed to facility closure risk
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
CMS ownership-review staff:
Private equity funds owning hospitals:
Patients exposed to facility closure risk:
Hospitals losing Medicare payment eligibility:
Private-equity-controlled hospital corporations:
Real estate investment trusts owning facilities:
Affiliates jointly liable for facility penalties:
Skilled nursing facilities losing Medicare payments:

Legislative Progress

In Committee
Introduced Committee Passed
Mar 12, 2026

Referred to the Committee on Ways and Means, and in …

Mar 12, 2026

Introduced in House

Mar 12, 2026

Ms. Scanlon (for herself, Ms. DeLauro, Mr. Deluzio, Ms. Jayapal, …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Healthcare
3 mentions across 1 clause
+1 positive -2 negative

Hospitals losing Medicare payment eligibility, Independent hospitals competing for Medicare patients, Private-equity-controlled hospital corporations

Positive-direction: Independent hospitals competing for Medicare patients

Negative-direction: Hospitals losing Medicare payment eligibility, Private-equity-controlled hospital corporations

Healthcare Beneficiaries
2 mentions across 1 clause
+1 positive -1 negative

Medicare patients in affected facilities, Patients exposed to facility closure risk

Positive-direction: Medicare patients in affected facilities

Negative-direction: Patients exposed to facility closure risk

Nursing Facilities
2 mentions across 1 clause
+1 positive -1 negative

Independent nursing facilities competing for patients, Skilled nursing facilities losing Medicare payments

Positive-direction: Independent nursing facilities competing for patients

Negative-direction: Skilled nursing facilities losing Medicare payments

Government
2 mentions across 1 clause
+1 positive -1 negative

CMS enforcement teams collecting owner liabilities, CMS ownership-review staff

Positive-direction: CMS enforcement teams collecting owner liabilities

Negative-direction: CMS ownership-review staff

Financial Services
2 mentions across 1 clause
-2 negative

Affiliates jointly liable for facility penalties, Private equity funds owning hospitals

Health Care
1 mention across 1 clause
+1 positive

Clinicians working after covered-owner divestiture

Rural Communities
1 mention across 1 clause
+1 positive

Communities retaining restructured facilities

Real Estate
1 mention across 1 clause
-1 negative

Real estate investment trusts owning facilities

1/2
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Medicare Provider Participation Hospital Ownership Skilled Nursing Facilities Private Equity in Health Care Health-Care Corporate Liability
Actor Mappings
"affiliate"
→ Entity controlling or under common control with a covered firm
"beneficiary"
→ Medicare beneficiary receiving facility care
"administrator"
→ Secretary of Health and Human Services acting through CMS
"covered_owner"
→ Private equity fund or real estate investment trust
"prohibited_provider"
→ Hospital or skilled nursing facility under covered ownership

Note: {'scope_ids': ['covered_firm_medicare_payment_ban'], 'description': 'The provision is a Medicare payment condition rather than a universal ownership ban; existing covered facilities receive three years, affected providers retain notice and hearing rights, and ordinary goods or non-management contracts do not alone establish control.'}

Key Definitions

Terms defined in this bill

3 terms
"control" §control

Direct or indirect power over management, administrative functions, assets, or policies, including at least 10 percent of voting securities or qualifying management contracts.

"affiliate" §affiliate

An entity that controls, is controlled by, or is under common control with another entity.

"covered firm" §covered_firm

A private equity fund, a corporation owned or controlled by a private equity fund, or a real estate investment trust.

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology