Pennsylvania HB 1460: An Act providing for approval from the Department of Health and the Office of Attorney General before certain transactions involving health care entities within this Commonwealth.

Bill Text

SENATE AMENDED
PRIOR PRINTER'S NOS. 1696, 1821, 1871 PRINTER'S NO. 3687
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1460
Session of
2025
INTRODUCED BY BOROWSKI, TAKAC, KHAN, BOYD, O'MARA, KRUEGER,
CURRY, KAZEEM, DELLOSO, YOUNG, HILL-EVANS, GIRAL, FIEDLER,
SANCHEZ, FREEMAN, PROBST, HOHENSTEIN, DONAHUE, SCHLOSSBERG,
PROKOPIAK, CEPEDA-FREYTIZ, CERRATO, WAXMAN, DALEY, CIRESI,
KENYATTA, FRANKEL, GREEN, WEBSTER, KOSIEROWSKI, HANBIDGE AND
MADSEN, MAY 13, 2025
SENATOR FARRY, INSTITUTIONAL SUSTAINABILITY AND INNOVATION, IN
SENATE, AS AMENDED, JUNE 24, 2026
AN ACT
Providing for approval from the Department of Health and the
Office of Attorney General before certain transactions
involving health care entities within this Commonwealth.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Definitions.
Chapter 3. Covered Health Care Transactions
Section 301. Transaction against public interest.
Section 302. Filing of transactions.
Section 303. Public input.
Section 304. Determination and restraining prohibited
transactions.
Section 305. Compliance and power of court.
Section 306. Powers and duties of Attorney General.
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Section 307. Powers and duties of department.
Section 308. Confidential treatment.
Chapter 10. Miscellaneous Provisions
Section 1001. Construction.
Section 1002. Effective date.
PROVIDING FOR APPROVAL FROM THE DEPARTMENT OF HEALTH AND THE
OFFICE OF ATTORNEY GENERAL BEFORE CERTAIN TRANSACTIONS
INVOLVING HEALTH CARE ENTITIES WITHIN THIS COMMONWEALTH.
TABLE OF CONTENTS
CHAPTER 1. PRELIMINARY PROVISIONS
SECTION 101. SHORT TITLE.
SECTION 102. DEFINITIONS.
SECTION 103. ADJUSTMENTS.
CHAPTER 3. COVERED HEALTH CARE TRANSACTIONS
SECTION 301. TRANSACTION AGAINST PUBLIC INTEREST.
SECTION 302. FILING OF TRANSACTIONS.
SECTION 303. PUBLIC INPUT.
SECTION 304. OBJECTIONS BY ATTORNEY GENERAL.
SECTION 305. COMPLIANCE AND POWER OF COURT.
SECTION 306. POWERS AND DUTIES OF ATTORNEY GENERAL.
SECTION 307. POWERS AND DUTIES OF DEPARTMENT.
SECTION 308. CONFIDENTIAL TREATMENT.
CHAPTER 10. MISCELLANEOUS PROVISIONS
SECTION 1001. CONSTRUCTION.
SECTION 1002. STUDY AND REPORT BY LEGISLATIVE BUDGET AND
FINANCE COMMITTEE.
SECTION 1003. EFFECTIVE DATE.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
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Section 101. Short title.
This act shall be known and may be cited as the Health System
Protection Act.
Section 102. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Affected community." A county within this Commonwealth
where an existing health care facility is physically located or
a county whose residents are regularly served by the existing
health care facility.
"Affiliate." A person that directly or indirectly, through
one or more intermediaries, controls or is controlled by, or is
under common control with, the person specified.
"Against the public interest." A covered transaction that,
as determined by the Attorney General, results in any of the
following:
(1) A significant reduction in competition or a
significant increase in costs for health care payers,
purchasers or consumers.
(2) An unfair method of competition in or unfairly
affecting health care commerce or an unfair or deceptive act
or practice in or affecting health care commerce.
(3) A significant reduction in the quality of care
available within the health care entity's market territory.
(4) A significant reduction in access to or availability
of health care services for payers, purchasers or consumers.
(5) A significant reduction in access to care in a
rural, low-income or disadvantaged community.
(6) A health care leaseback agreement.
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"Attorney General." The Office of Attorney General of the
Commonwealth.
"Capital distribution." A payment made, liability incurred
or other consideration given by a health care entity to a person
for the purchase, acquisition, redemption, repurchase, payment
or retirement of capital stock or other equity interest of the
health care entity or as a dividend, return of capital or other
distribution in respect of the health care entity's capital
stock or other equity interest.
"Control," "controlled by" or "under common control with."
As follows:
(1) The possession, direct or indirect, of the power to
direct or cause the direction of the management and policies
of a person, whether through the ownership of voting
securities, by contract other than a commercial contract for
goods or nonmanagement services or otherwise, unless the
power is the result of an official position with or corporate
office held by the person. Control shall be presumed to exist
if a person