Bill > HB317

This bill establishes the "Hospital Lease Accountability Act" to regulate lease agreements between healthcare facilities and their lessors, primarily targeting for-profit, publicly traded real estate investment trusts that own and lease hospitals with 200 or more beds. The bill outlines specific actions and penalties if a leased hospital experiences financial distress, such as service closures, employee payment failures, or bankruptcy. If such distress occurs, the lessor entity must provide funds to keep the facility operational for 12 months, reimburse the state for any emergency funds, and provide detailed financial disclosures. Moreover, if the financial distress is deemed to result from the lease agreement's terms or financial extractions, the lessor entity's board members and executive officers can be personally liable for repaying funds, facing civil penalties up to $250,000 per person, and being disqualified from serving on healthcare facility boards for ten years. The bill prohibits using Medicaid or emergency grant funds for lease payments and allows the attorney general or district attorney to investigate and bring civil actions against lessors. The legislation also provides legal mechanisms for court proceedings, including the ability to enter restraining orders to preserve personal assets and awarding treble damages in cases of misconduct, while offering immunity to good-faith whistleblowers.

Health and Social Services

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB317&sbi=y