WA Hospital Consolidation Bill Fails: Increased Oversight Denied
TL/DR –
The Washington Keep Our Care Act, aimed at increasing oversight of hospital and healthcare consolidations, has failed to be passed this legislative session. The bill intended to allow for more public discussion of healthcare consolidation and a more significant role for the state’s attorney general in reviewing such transactions. Critics argued that the bill could discourage future healthcare mergers and acquisitions, which could lead to closures of smaller, financially struggling healthcare facilities.
Washington’s Keep Our Care Act Fails to Pass, Stymying Hospital Consolidation Oversight
The Keep Our Care Act, aimed at increasing Washington’s oversight of hospital and healthcare consolidations, failed to progress this legislative session. The Senate Bill 5241 was intended to safeguard market competition and contain healthcare costs amidst the rising presence of large healthcare and insurance chains in Washington.
The Bill, approved by the Senate but stalled in the House, failed to secure a floor vote before the deadline. Rep. Tarra Simmons, a supporter of the Bill, expressed her deep disappointment, highlighting the negative impact of consolidations on healthcare access, costs, and choice.
Had it passed, the Act would have bolstered public dialogue around healthcare consolidation and the role of the Attorney General in reviewing transactions, particularly those involving large national hospital systems, health insurers and firms seeking to merge with smaller healthcare organizations.
Attorney General Bob Ferguson, in favor of the bill, echoed the need for protection of affordable care, particularly reproductive health services. Similarly, Leah Rutman of the ACLU expressed disappointment, decrying the prioritization of profits over patients and the risk of losing access to vital health services.
The Attorney General’s Office already oversees healthcare transactions, but the bill would have expanded their power to impose conditions or reject a transaction altogether if it would negatively affect patient care.
According to a recent state report, eight large health systems control over 90% of licensed beds in the state. The report, along with other studies and experts, highlight the rising costs and narrowing services as a result of healthcare consolidation. However, hospital industry leaders contest these claims, blaming chronic government underfunding and escalating costs of supplies and staffing.
The Bill received backlash from those who believed it imposed excessive requirements on organizations involved in transactions. Critics argued that the proposed Act could discourage future deals, potentially leading to the closure of smaller, financially unstable hospitals and clinics.
Despite this setback, advocates like the Washington State Hospital Association remain committed to maintaining affordable and accessible healthcare and expect to see similar legislation in future sessions.
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