Senators Ed Markey (D-Mass.) and Elizabeth Warren (D-Mass.) have introduced a bill that would impose criminal penalties for private equity firms that extract wealth from healthcare organizations.

The Corporate Crimes Against Health Care Act of 2024 would allow federal prosecutors to hold private equity executives liable if the business practices of their healthcare entities result in the death of a patient. Penalties include a stint in a federal prison and stiff fines.

Warren and Markey said the legislation is aimed at curbing “looting” by private equity, where investors purchase healthcare practices and hospitals only to run them out of business by prioritizing short-term profits. READ MORE