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HB 7224

AN ACT EXPANDING LIABILITY UNDER THE FALSE CLAIMS ACT FOR ENTITIES WITH AN OWNERSHIP INTEREST AND PROHIBITING THE LICENSING OF HOSPITALS WITH CERTAIN LEASE BACK ARRANGEMENTS.

2025 Regular Session Introduced by Matt Blumenthal

Overview: HB 7224 - AN ACT EXPANDING LIABILITY UNDER THE FALSE CLAIMS ACT FOR ENTITIES WITH AN OWNERSHIP INTEREST AND PROHIBITING THE LICENSING OF HOSPITALS WITH CERTAIN LEASE BACK

REF. BY HOUSE TO COMMITTEE ON Public Health
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Bill Summary · HB 7224

Overview: HB 7224 - AN ACT EXPANDING LIABILITY UNDER THE FALSE CLAIMS ACT FOR ENTITIES WITH AN OWNERSHIP INTEREST AND PROHIBITING THE LICENSING OF HOSPITALS WITH CERTAIN LEASE BACK ARRANGEMENTS.
Status: REF. BY HOUSE TO COMMITTEE ON Public Health
Introduced: March 14, 2025

Purpose and Intent: This bill aims to strengthen the state's False Claims Act by expanding liability for entities with an ownership interest in organizations that submit false claims to the government. It also seeks to address concerns about certain lease-back arrangements between hospitals and real estate investment trusts (REITs).

Key Provisions:
- Expands the definition of "person" under the False Claims Act to include any entity with an ownership interest in an organization that submits a false claim.
- Prohibits the state from issuing or renewing licenses for hospitals that have certain lease-back arrangements with REITs or limited partnerships.
- Requires hospitals to disclose any lease-back arrangements with REITs or limited partnerships as part of the licensing process.
- Directs the Department of Public Health to develop regulations for implementing the new licensing requirements.

Affected Parties and Impacts:
- Entities with ownership interests in organizations that submit false claims to the government will face increased liability under the False Claims Act.
- Hospitals with certain lease-back arrangements may be unable to obtain or renew their licenses, potentially impacting their operations and patient care.
- The Department of Public Health will be responsible for developing and enforcing the new licensing regulations.

Procedural and Timeline Considerations:
The bill has been referred by the House to the Committee on Public Health for further consideration. If passed, the Department of Public Health will need to develop the necessary regulations for implementing the new licensing requirements.

Compiled from official sources — confirm details with the bill’s official record.

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