Bill
S 892
Imposes a $500,000-per-day civil penalty on health care entities for failing to file, implement, or truthfully report required performance improvement plans under c.6D, §10.
Summary
- Purpose: Amend Massachusetts General Laws (chapter 6D, §10) to dramatically increase civil penalties for certain failures by regulated health care entities to file, implement, or truthfully report required “performance improvement plans” (PIPs) to the Health Policy Commission (or other commission referenced in chapter 6D).
- Core change: Replace existing subsection (q) of G.L. c.6D, §10 with a strict penalty regime that authorizes the commission to assess civil penalties of $500,000 per day against a health care entity that: (i) willfully neglects to file a PIP within 45 days as required under subsection (d); (ii) fails to file an acceptable PIP in good faith; (iii) fails to implement a filed PIP in good faith; or (iv) knowingly fails to provide required information to the commission or knowingly falsifies that information.
Key provisions (what the bill would do)
- Replaces current subsection (q) of G.L. c.6D, §10 with new language creating four predicate violations tied to PIP filing, good‑faith filing and implementation, and truthfulness of information.
- Authorizes the commission to assess a civil penalty of $500,000 per day for each day a violation continues once the commission determines one of the listed violations has occurred.
- Retains the statutory framework requiring submission of PIPs under subsection (d) (the bill assumes existing deadlines and PIP requirements remain in place, including the 45‑day filing timeframe referenced).
Who or what would be affected
- “Health care entities” subject to chapter 6D (examples include hospitals and other providers regulated by the Health Policy Commission; the bill applies to entities as defined by that chapter).
- The Health Policy Commission (or statutory “commission” in c.6D) — enforcement and penalty authority is vested in the commission.
- Consumers indirectly — by incentivizing compliance with PIP requirements, but also potentially through cost or operational impacts on providers that face large penalties.
- Health care providers, provider systems, or insurers that must file or implement PIPs and disclose information under c.6D.
Potential impacts and considerations
- Compliance incentive: Very large daily penalties create strong incentive to file and implement PIPs and to provide truthful information promptly.
- Financial exposure: A $500,000/day penalty could produce enormous financial liability quickly and may lead to litigation challenging penalty amount, notice, process, or applicability.
- Downstream effects: Providers may redirect resources to compliance, or contest penalties in court; possible impacts on provider finances and on consumer costs if compliance costs are passed on.
- Legal and administrative questions: Enforcement process, appeal procedures, proportionality, and whether penalties are subject to procedural due process or state constitutional limits may become focal points.
Procedural status (as provided)
- Introduced: 2025-03-06 (Senate)
- Referred to: Consumer Protection (multiple entries show referral); also docket entries and hearings reference Health Care Financing and Veterans’ Affairs committees.
- Hearings: Committee hearing scheduled 06/02/2025 (Gardner Auditorium), with other committee activity noted on March–May 2025.
- Current status: Referred to committee (as of the latest actions listed).
Notes and data inconsistencies
- The bill text provided is a Massachusetts state-law amendment to G.L. c.6D (Health Policy Commission statutory framework). Some accompanying metadata (title referencing consumer reporting agencies and a list of federal legislators as “sponsors”) appears inconsistent with the text and with a Massachusetts state bill. This summary follows the bill text itself (amendment to c.6D, §10) rather than the inconsistent metadata.
Compiled from official sources — confirm details with the bill’s official record.
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