H.R. 7920: Take Back Our Hospitals Act of 2026

This bill, known as the Take Back Our Hospitals Act of 2026, aims to amend the Social Security Act to restrict certain healthcare facilities from participating in the Medicare program based on ownership criteria. Here’s a breakdown of what the bill proposes:

Prohibition on Payments

The bill includes a significant prohibition: Medicare payments would not be made to hospitals or skilled nursing facilities that are owned or controlled by covered firms. A covered firm is defined as:

• A private equity fund
• A corporation owned or controlled by such a fund
• A real estate investment trust

Exceptions and Timeframe

If a hospital or skilled nursing facility is owned by a covered firm on the date when this bill is enacted, it will not immediately be in violation of this rule. Instead, such facilities will be granted a grace period of three years to adjust their ownership structures before they are required to comply with the prohibition.

Legal Processes and Liability

In the event a hospital or skilled nursing facility is found to be violating the payment prohibition, they will have the right to reasonable notice and a hearing. The bill establishes that:

• The affiliates of the covered firm will be jointly and severally liable for any penalties or obligations resulting from such violations.

Definitions

Several terms are defined to clarify the bill's provisions:

• Affiliate: An entity that is controlled by, controls, or is under common control with another entity.
• Control: Having the power to direct management, assets, or policies of an entity, typically indicated by owning 10 percent or more of voting securities.
• Corporation: Various forms, such as joint-stock companies or limited liability companies, among others.
• Private equity fund: A company that acts as a control person of an investment company as described in the Investment Company Act of 1940.
• Real estate investment trust: Defined according to the Internal Revenue Code.

Implementation and Oversight

The bill grants authority to the Secretary of Health and Human Services to enforce these provisions, ensuring compliance through necessary administrative actions.

Relevant Companies

• KKR & Co. Inc. (KKR) - As a private equity firm, KKR could be impacted by the prohibition against Medicare payments if it owns or controls hospitals or skilled nursing facilities.
• Booking Holdings Inc. (BKNG) - Although primarily known for travel services, if it has investments tied to healthcare facilities, it may face repercussions under this bill.
• Affiliated Managers Group, Inc. (AMG) - As a firm that might manage healthcare investment funds, its affiliated healthcare facilities could be affected.