Stop MPT Act
This bill, titled the Stop Medical Profiteering and Theft Act (Stop MPT Act), would curb certain real estate transactions between health care entities and real estate investment trusts (REITs). It prohibits health care entities and their affiliates or “covered firms” from entering into sale-to-REIT or lease-from-REIT arrangements if the terms would lead to a long-term weakened financial status of the health care entity or threaten public health. The bill creates a review process led by the Secretary of Health and Human Services (HHS), allows for state collaboration, and establishes enforcement mechanisms including civil penalties. It also amends the Internal Revenue Code to treat rents from qualified health care property in a way that aligns with the bill’s health care-focused protections. The overall aim is to prevent real estate arrangements that could undermine patient care or the financial stability of health care providers. In short, the measure seeks to slow or block financially risky or health-risky real estate deals involving health care providers and REITs, via federal review and enforcement, while adjusting related tax provisions to reflect this health care property framework.
Key Points
- 1Prohibition on certain REIT transactions: Health care entities or their covered firms may not sell to, or lease from, a REIT an interest in real property if the deal terms would lead to long-term weakened financial status of the health care entity or place public health at risk.
- 2Secretary review and standard: The Secretary of Health and Human Services must require the health care entity or its owner to submit sale/lease terms for review. The Secretary determines whether terms would jeopardize finances or public health and may consult with the relevant State attorney general.
- 3Enforcement and penalties: If a violation is found, the Secretary may impose civil monetary penalties up to $10,000 per violation. State law remains in effect where applicable, but the Secretary can enforce aspects of the prohibition if a state fails to substantially enforce it.
- 4Definitions: The bill defines key terms, including “health care entity” (e.g., hospitals, physician practices, skilled nursing facilities, hospices, mental/behavioral health providers, opioid treatment programs, Medicare-enrolled providers, etc.), “affiliate,” “covered firm,” and related corporate structures that would be subject to the rules.
- 5Tax code changes for qualified health care property: The bill amends IRC 856 to treat rents from qualified health care property as amounts that can be included in certain tax classifications, with conforming amendments to avoid conflicting references. This alters tax treatment of such rents and ties the tax rules to the health care property framework. Effective date: these amendments apply to taxable years beginning after enactment.