Bill requires transparent information when a health care facility is bought and sold
Philadelphia, PA. — Councilmember Isaiah Thomas has introduced a bill to increase transparency when hospitals and long-term care facilities are sold in Philadelphia. The pandemic has highlighted the consequences of not understanding what happens in the sale and purchase of healthcare facilities; these unknown factors have ramifications on workers, patients and their families. Councilmember Thomas has worked with SEIU Healthcare, 1199C and Community Legal Services to best understand and address the issue of lack of transparency in healthcare facilities. Advocates found that the state regulation and information disclosed during the sale of healthcare facilities has been too limited. In recent instances such as the sales of Hahnemann Hospital, Somerton Senior Center, Powerback Rehabilitation Center and more, better transparency would equate to better care for patients and safer facilities for healthcare workers.
“The sale and purchase of a healthcare facility may happen for a number of reasons. The workers, patients and their families have a right to know who is involved,” said Councilmember Isaiah Thomas. “I’ve introduced a bill in City Council that would require reporting and increased transparency in the event of such a sale. How can a nurse or patient feel safe and cared for if they don’t know who is taking care of them?”
The Transparency in Healthcare Bill would require new reporting in the event of the sale of a long-term care facility or hospital. The names of all parties (direct and indirect owners) involved in the transaction must be disclosed and, after internal review, must be made public. When the sale is in progress, both parties must disclose additional information including finances and operator of facilities and, after internal review, must be made public. Workers will have protection from being fired without cause for the 90 days following the sale.
Philadelphia saw the effect of not having this legislation in place with the recent sale of Hahnemann Hospital. It was not until after the hospital was purchased that workers and patients saw the uncertainty of the future of the eventually closed hospital. While Hahnemann’s fate was publicly in question, workers worried about their wages, insurance coverage and employment while patients worried about their quality and future of care.
“District 1199C is proud to support Councilman Thomas legislation that will ensure that when a hospital or nursing home is sold, that workers and healthcare advocates will know the background of the new owners and have a chance to protect our members if necessary. If Hahnemann’s closing taught us anything, not all buyers have the best interests. This legislation will ensure that 1199C members have a seat at the table before the next Hahnemann can happen again.”
While Hahnemann’s closure was seen on the national stage, these closures and changes in ownership happen very regularly and without the spotlight. Most recently, Powerback Rehabilitation was sold to a new owner. Workers at these facilities are committed to providing the best possible care to residents, regardless of ownership. But for these workers, these facilities are their employers and a change in ownership often means a sudden change in wages, insurance coverage or even employment itself.
“You can’t call us heroes and then treat us with such disrespect,” said Terry Thomas, CNA and union chapter President at Powerback Rehabilitation Center. “Under new ownership, my monthly prescription skyrocketed to $300 more expensive per month. As I was trying to figure out how to come up with this extra money, I found out my insurance was cancelled all together and nothing was put in place to move caregivers onto a new plan. That is outrageous and unacceptable. If the Transparency in Healthcare Bill had been law, we would have known who we were were working with and may have made different decisions or planned differently.”
Cosponsors on the Transparency in Healthcare Bill include City Councilmembers Brooks, Gauthier, Gym, Henon, Gilmore Richardson, Bass and O’Neill. The next steps, following introduction, will be a committee hearing in the relevant committee.
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