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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | April 3, 2023 09:24 AM |
|---|---|
| From: | Representative Gina H. Curry and Rep. Carol Kazeem, Rep. Regina G. Young |
| To: | All House members |
| Subject: | Enhancing Financial Disclosures in Hospitals |
| In 2022, the Delaware County Memorial Hospital shuttered its emergency department, maternity ward, operating rooms and intensive care units at the direction of its for-profit parent company, Prospect Medical Holdings, leaving nearly 85,000 residents of the community without access to health care. Unfortunately, this lack of care for the community was resultant of the company’s financial liability of a $1.12 billion loan – a debt previously undisclosed. Blaming high labor costs and other variables, Prospect Medical Holdings was not required to report this debt under state law or share its full financial portfolio until it was too late and the damage to the community had been done. We believe that providers of care have a responsibility to be financially sound, so that everyone can receive access to high quality health care. It is for this reason that we plan to introduce legislation to require hospitals and ambulatory surgical facilities to report financial statements related to their owning corporations. Under this bill, every one of these institutions licensed by our state would be required to report its financial position, including costs incurred from providing health services and total payroll, among other items. This legislation is modeled from Rhode Island laws which provide for financial accountability with their hospitals. Because these providers care for our family and friends, we must ensure transparency for all. Please consider joining us and co-sponsoring this much needed legislation to guarantee that the unfortunate actions taken by Prospect Medical Holdings do not happen elsewhere. |
Introduced as HB1074