Bill > S899

This bill introduces new regulations for hospitals in Massachusetts to promote financial fairness and transparency. The legislation defines key terms like "facility" (which includes various types of hospitals and acute care units) and "compensation" (covering salary, bonuses, perks, and other financial benefits). The bill establishes two primary financial oversight mechanisms: first, hospitals that receive state funds and have an annual operating margin exceeding 8% will be subject to a civil penalty equal to the excess amount; second, if a hospital's chief executive officer receives annual compensation more than 50 times the lowest-paid full-time employee's wage, the hospital will also face a civil penalty. Additionally, hospitals must annually report all financial assets to the Center for Health Information and Analysis, which will make this information public within seven days. Any penalties collected will be deposited into a new Medicaid Reimbursement Enhancement Fund, intended to improve Medicaid reimbursement rates. The bill includes provisions for regulatory implementation by the Health Policy Commission, ensures the law does not disrupt existing contracts as of January 1, 2025, and contains a severability clause to protect the overall legislation if any specific part is found invalid by a court.

Health and Social Services

https://malegislature.gov/Bills/194/S899