The Minnesota Hospital Association is speaking out against a proposed law that would increase the state’s oversight of hospital and health system mergers.
The bill, HF402, is too vague as it is written and indicates a lack of trust and adaptability from the government, the MHA wrote in a Feb. 1 letter to the state’s commerce, finance and policy committee. Hospitals’ current challenges require more, not less, flexibility from lawmakers — contradictory to the bill’s proposed 180-day review timeline.
“Trust in science and trust in the high-quality care that hospitals and health systems provided — from the public and from lawmakers — allowed us to go further and reach unprecedented heights of care and service [during the pandemic],” the letter said. “Is this bill a signal that something has suddenly changed in that level of trust in our health care organizations, and if so, we respectfully ask why that is?”
The MHA argued that the current oversight process — which includes federal and state antitrust laws, authorities provided to the state attorney general, licensing laws and public review processes conducted by the state health department — is “robust” and effective as is, and questioned the need for further measures.
Additionally, the organization criticized the bill’s broad administrative oversight procedures. Under the bill as it’s written, hospitals would have to get any financial transaction that grants a “security interest” approved by the health department and attorney general. According to the MHA, simple bond financing or bank loans could fall under these terms.
The letter also questions the ambiguous standards used to evaluate potential transactions, and said the proposed 180-day review timeline is inconsistent with customary processes — which could lead to delays and higher prices, it says.
“It is important to note that denying a healthcare entity transaction could result in essential healthcare services being totally eliminated from a community in our state,” the letter said.
The bill responds to a controversial proposed merger between Sanford Health, based in Sioux Falls, S.D, and Fairview Health Services, based in Minneapolis. It is backed by the Minnesota Nurses Association, which has raised concerns about a large, out-of-state health system’s ability to serve Minnesotans — and protect nurses’ jobs.
