HF2779

Purpose of the Bill

The purpose of this bill is to enhance transparency in health care by requiring health care entities in Minnesota to report detailed information about their ownership and control structures. This aims to make the health care sector more accountable and to help the state monitor and regulate the industry effectively.

Main Provisions

• Reporting Requirements: Health care entities must report specific details about their ownership, management, structure, and affiliated entities to the Minnesota Commissioner of Health. The report must include information on legal names, business addresses, identification numbers, ownership interests, organizational charts, and financial records.
• Annual Public Reports: By June 1, 2027, and annually thereafter, the health commissioner will release a public report on the Department of Health’s website. This report will summarize the ownership and control structures of health care entities, including any changes in their business structure or tax identification.
• Exemptions: Certain smaller entities, such as independent provider organizations with two or fewer physicians, may qualify for exemptions but are still required to report after significant transactions.
• Data Handling and Privacy: While most data reported are public, health professionals' Social Security numbers used as taxpayer identification numbers will remain private.
• Consolidation of Reports: The commissioner is authorized to consolidate reporting requirements to minimize duplication with other state reporting obligations.

Significant Changes to Existing Law

• New Chapter Codification: The bill proposes coding for new law as Minnesota Statutes Chapter 145E.
• Enforcement and Penalties: The department is granted authority to audit and verify reports, with penalties imposed on entities that fail to submit accurate reports. Fines range up to $500,000 for large entities and significant violations.
• Regulatory Framework: The commissioner may adopt necessary rules and establish fees to cover costs associated with maintaining these reporting requirements.

Relevant Terms

• Health care entity
• Ownership and control
• Significant equity investor
• Management services organization
• Private equity fund
• Affiliate
• Transaction
• Consolidation reports
• Public report
• Auditoriums and inspections
• Civil penalty