H.R. 7920

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7920 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7920

To amend title XVIII of the Social Security Act to prevent hospitals or 
skilled nursing facilities that are owned by certain firms from 
participating in the Medicare program.

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IN THE HOUSE OF REPRESENTATIVES

March 12, 2026

Ms. Scanlon (for herself, Ms. DeLauro, Mr. Deluzio, Ms. Jayapal, Mr. 
Moulton, Mr. Thanedar, and Ms. Tlaib) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
to the Committee on Energy and Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee 
concerned

_______________________________________________________________________

A BILL

To amend title XVIII of the Social Security Act to prevent hospitals or 
skilled nursing facilities that are owned by certain firms from 
participating in the Medicare program.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Take Back Our Hospitals Act of 
2026''.

SEC. 2. PREVENTING HOSPITALS AND SKILLED NURSING FACILITIES OWNED BY 
CERTAIN FIRMS FROM PARTICIPATING IN MEDICARE.

Section 1862 of the Social Security Act (42 U.S.C. 1395y) is 
amended by adding at the end the following new subsection:
``(p) Prohibition on Payments to Hospitals and Skilled Nursing 
Facilities Owned by Certain Firms.--
``(1) In general.--
``(A) Prohibition.--No payment may be made under 
this title to a hospital or skilled nursing facility 
that is owned or controlled by a covered firm or an 
affiliate of a covered firm.
``(B) Exception.--If, on the date of enactment of 
this subsection, a hospital or skilled nursing facility 
is owned or controlled by a covered firm or an 
affiliate of such a firm, such hospital or skilled 
nursing facility shall not be considered in violation 
of subparagraph (A) until the date that is 3 years 
after such date of enactment.
``(2) Notice, hearing, and judicial review.--Any hospital 
or skilled nursing facility found to be in violation of 
paragraph (1) shall be entitled to reasonable notice and 
opportunity for hearing as described in section 1128(f).
``(3) Joint and several liability.--A covered firm or an 
affiliate of such a firm that owns or is an affiliate of a 
hospital or skilled nursing facility that is in violation of 
paragraph (1) shall be jointly and severally liable for any 
penalty or obligation such hospital or skilled nursing facility 
receives for such violation.
``(4) Definitions.--In this subsection:
``(A) Affiliate.--The term `affiliate' means an 
entity that controls, is controlled by, or is under 
common control with another entity.
``(B) Control.--
``(i) In general.--The term `control' means 
to possess the power, directly or indirectly, 
to direct, or cause the direction of, the 
management, administrative functions, assets, 
or policies of an entity through owning voting 
securities in such entity, contracting with 
such entity (except for contracting with such 
entity for goods or non-management services), 
or other similar means, as determined by the 
Secretary.
``(ii) Voting securities.--A person shall 
be considered to control an entity if such 
person directly or indirectly owns, has rights 
over, or holds with the power to vote, 10 
percent or more of the voting securities of 
such entity.
``(C) Corporation.--The term `corporation' means--
``(i) a joint-stock company;
``(ii) a company or partnership association 
organized under a law that makes only the 
capital subscribed or callable up to a 
specified amount responsible for the debts of 
the company or partnership association, and 
includes a limited partnership and a limited 
liability company;
``(iii) a trust; or
``(iv) an association that--
``(I) possesses the power or 
privilege of a private corporation 
under State law; and
``(II) does not posses the power or 
privilege of a sole proprietorship or 
partnership under State law.
``(D) Covered firm.--The term `covered firm' 
means--
``(i) a private equity fund;
``(ii) a corporation that is owned or 
controlled by a private equity fund; or
``(iii) a real estate investment trust.
``(E) Private equity fund.--The term `private 
equity fund' means a person who--
``(i) would be considered an investment 
company under section 3 of the Investment 
Company Act of 1940 (15 U.S.C. 80a-3) but for 
the application of paragraph (1) or (7) of 
subsection (c) of such section; and
``(ii) directly, or through an affiliate, 
acts as a control person of such company.
``(F) Real estate investment trust.--The term `real 
estate investment trust' has the meaning given such 
term in section 856 of the Internal Revenue Code of 
1986.''.
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