What does Preamble of HR 7537 do?

This bill is formally titled 'To prevent exploitative private equity practices, and for other purposes.'

What does SHORT TITLE. of HR 7537 do?

This bill is formally titled the Corporate Crimes Against Health Care Act.

What does UNJUST ENRICHMENT CLAWBACK AUTHORITY AND CRIMINAL PENALTY. of HR 7537 do?

This section amends Chapter 31 of title 18, United States Code, to add sections 671 through 674. It establishes a process for clawing back covered compensation from 'covered parties' who contributed to a 'triggering event' resulting in patient death or injury at a 'target firm'. A 'triggering event' includes instances like salary payment shortfalls, firm closure, rent or loan defaults, or insolvency proceedings. Covered parties may face criminal penalties (imprisonment of 1-6 years) and civil penalties (up to 5 times the clawback amount). The Attorney General or a State attorney general can initiate clawback actions, and State attorneys general can bring civil actions on behalf of residents. Clawed-back compensation will be deposited into a fund to address shortfalls in employee salaries and benefits, and to serve healthcare needs in the harmed community. An affirmative defense exists if a covered party demonstrates they could not have prevented the triggering event.

What does PROHIBITING PAYMENTS FROM FEDERAL HEALTH CARE PROGRAMS TO of HR 7537 do?

This section amends Section 1128(a) of the Social Security Act. The amendment prohibits payments from federal health care programs to individuals or entities that sell assets to, or pledge assets as collateral for a loan with, a real estate investment trust. The prohibition applies to transactions occurring on or after the date of enactment of this paragraph. An exception is made for agreements to pledge assets as collateral that were made before the date of enactment.

What does REPEAL OF SPECIAL RULE FOR TAXABLE REIT SUBSIDIARIES WITH of HR 7537 do?

This section amends sections 856(d)(8)(B) and 856(d)(9) of the Internal Revenue Code of 1986. The amendments remove references to 'qualified health care property' within these sections. These changes apply to taxable years beginning after the enactment of this Act.

What does ELIMINATION OF QUALIFIED REIT DIVIDENDS FROM QUALIFIED BUSINESS of HR 7537 do?

This section amends Section 199A(b) of the Internal Revenue Code of 1986, modifying the definition of 'combined qualified business income amount'. Specifically, it revises paragraph (1) of section 199A(b) to state that the term 'combined qualified business income amount' is the sum of amounts determined under paragraph (2) for each qualified trade or business. The section also makes conforming amendments to Section 199A(c)(1) by striking the last sentence and to Section 199A(e) by removing paragraph (3) and redesignating paragraph (4) as paragraph (3). These amendments apply to taxable years beginning after the date of the Act's enactment.

What does MANDATORY REPORTING WITH RESPECT TO CERTAIN HEALTH-RELATED of HR 7537 do?

This section amends the Social Security Act to establish mandatory reporting requirements for certain health-related ownership information. Specified entities, including hospitals, health systems, and physician practices, must submit annual reports to the Secretary detailing information related to ownership, control, financial data, and quality payments. The reports must include data on mergers, acquisitions, changes in ownership, and financial information like debt-to-earnings ratios and real estate transactions. The Secretary will publicly post this information annually, subject to privacy protections to avoid disclosing sensitive personal information. The Secretary will conduct annual audits to verify compliance with these reporting requirements. Failure to provide a complete report or submitting false information can result in a civil monetary penalty of up to $5,000,000 per report.

What does REPORT ON MORAL INJURY IN HEALTH CARE. of HR 7537 do?

This section requires the Inspector General of the Department of Health and Human Services to conduct a study on profit-driven practices in health care delivery. The study must evaluate practices such as overbilling, inflated patient severity scores, and executive compensation structures. The study will also assess the impact of these practices on patient care quality, safety, personnel well-being, and various federal healthcare programs (Medicare, Medicaid, VA health care, etc.). The report must include an estimate of the financial returns from these practices. Finally, the study will evaluate the adequacy of current federal policies to prevent and penalize health care fraud and abuse, considering health care consolidation.

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To prevent exploitative private equity practices, and for other purposes. — HR. 7537

Corporate Crimes Against Health Care Act

Last updated: 2/12/2026 · Introduced: 2/12/2026

Author: Maggie Goodlander (D-NH)

TL;DR (AI)

This bill establishes a process to claw back compensation from individuals and entities (covered parties) who contributed to patient harm or death at healthcare facilities owned by private equity firms, potentially leading to criminal and civil penalties.
The bill prohibits federal healthcare programs from reimbursing entities that sell assets to or pledge assets as collateral to real estate investment trusts, with limited exceptions for pre-existing agreements.
It mandates annual reporting requirements for hospitals, health systems, and physician practices, requiring them to disclose ownership, financial data, and quality payments to the Secretary of Health and Human Services, which will be publicly posted.

119th Congressin committeeS. 3829(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 6 more.

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