U.S. Senators Ed Markey (D-MA), Richard Blumenthal (D-CT) and Bernie Sanders (D-VT) recently filed the Stop Medical Profiteering and Theft (MPT) Act, legislation that would establish regulatory oversight to address health systems from “so called” predatory leaseback deals with real estate investment trusts (REITs). The Stop MPT Act would address REIT investments in hospitals, health care systems, and other health care providers. Specifically, the bill would:
- Prohibit the entry of a health care entity into a lease or sale agreement with a REIT that could weaken the financial status of the health care entity or place public health at risk;
- Allow HHS to review all lease agreements to determine whether the agreements would lead to a long term weakened financial status of the health care entity; and
- Close tax loopholes for REITs for rental income from health care properties.
Notably, the legislation does not specify assisted living as one of the entities subject to regulatory oversight. This is a direct result of Argentum’s advocacy over the past year with Senator Markey’s office and his related “Health Over Wealth Act” introduced last year, where Argentum successfully advocated for assisted living to be removed from the legislation between the draft and final version as introduced—the only entity to be removed. While assisted living is not specifically one of the health care entities targeted in the new “Stop MPT” legislation (hospitals, physician practices, skilled nursing facilities, hospice facilities, mental or behavioral health care providers, and opioid treatment programs) and while we do not expect this legislation to advance at this time, we are concerned with a provision that states the Secretary of Health of Human services may include other entities they deem appropriate.