[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4085 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4085
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.
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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
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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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Take Back Our Hospitals Act of
2026''.
SEC. 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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