Massachusetts Gov. Maura Healey signed into law a bill that increases oversight of the healthcare market, affecting private equity companies, MSOs and other entities, The National Law Review reported Jan. 10.
Five notes:
1. House Bill 5159 aims to increase regulatory oversight of transactions between certain healthcare entities and affiliated companies, including private equity sponsors, significant equity investors, healthcare real estate investment trusts, MSOs and pharmaceutical companies in the state.
2. The new law adds to the transactions that are subject to the Massachusetts Health Policy Commission's Notice of Material Change requirements. It also authorizes the commission to require the submission of certain information from significant equity investors, such as capital structure, financial condition, ownership and management structure and audited financials.
3. Data and information collected under the commission's Registration of Provider Organizations Program will now also include ownership, governance and operational structure information of certain healthcare entities. The program's reporting threshold was also amended to include revenue generated from non-commercial payers.
4. Significant equity investors, healthcare REITs, MSOs and pharmaceutical companies will also be required to testify at the HPC’s Annual Cost Trends Hearing.
5. Non-hospital provider organizations will be required under the bill to pay assessments to help fund the commission and the state's Center for Health Information and Analysis.