Some lawmakers, physicians, and consumer advocates are urging support for a bill that would place a 5-year moratorium on the purchase of hospitals by private equity firms and real estate investment trusts.
Democratic Senator Mike Tipping is lead sponsor of the bipartisan bill, LD 985. During a hearing before the legislature's Health Coverage, Insurance, and Financial Services Committee Tuesday, Tipping said that private equity firms purchase hospitals to make profits, and often increase prices while cutting services.
"We can put a moratorium in place to protect our hospitals from being scrapped and sold for parts as we also work to make sure they have the support they need to continue providing vital services to Maine people," Tipping said.
Some lawmakers on the committee question whether a moratorium would handcuff financially struggling hospitals who need to sell in order to stay in business.
Central Maine Healthcare is in the process of being acquired by California-based Prime Healthcare Foundation, the nonprofit arm of Prime Healthcare, which is privately owned. That deal would not be affected if the bill passes.
No one spoke in opposition to the proposal.
