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Committee hears broad support and drafting concerns for bill expanding notice of hospital transactions
Summary
HB 2,548 would widen the Attorney General's 60‑day notice authority for hospital and provider transactions, authorize interagency data‑sharing, and in specified cases allow revocation of a hospital's nonprofit designation; supporters urged oversight of private‑equity deals while hospitals warned of drafting errors and undefined terms.
Lawmakers heard one‑minute testimony from dozens of witnesses January 21 on House Bill 2,548, which would expand the types of health‑care market transactions that must be reported to the Attorney General and strengthen regulatory review to protect competition and access to care.
Staff explained that the bill broadens the statutory definition of a “material change” that triggers the Attorney General’s 60‑day pretransaction notice. Covered transactions would include changes of ownership or control of hospitals, significant acquisitions or sales of hospital assets (including sale‑leaseback transactions), and conversions of hospital systems from nonprofit to for‑profit status. The bill would pause transactions while the Attorney General requests and receives additional information, authorize memoranda of understanding for interagency data sharing (for example among the Attorney General, Department of Health, Office of the Insurance Commissioner and Health Care Authority), and direct the Secretary of State to follow revocation procedures under chapter 74.45 RCW when specified conditions are met.
Supporters — including the Office of the Insurance Commissioner, the Attorney General’s Antitrust Division, nursing groups, patient advocates and medical societies — said the measure fills statutory gaps exposed by rising private‑equity investment in health care and would give the state better tools to detect anti‑competitive consolidation. “Private equity acquisitions are a particular concern because these firms are linked to higher costs and predatory billing,” said Jessica Hoffeen of the Washington State Nurses Association.
Hospital associations and system counsel urged revisions. The Washington State Hospital Association and corporate legal counsel from MultiCare said the bill contains undefined terms (for example, “significant change,” “control,” and “substantial compliance”), a drafting error that could be read to strip nonprofit designation too broadly, and gaps that would not capture common private‑equity structures such as management services organizations. Staff committed to working with stakeholders on drafting fixes.
Next steps: Testimony concluded with staff and the sponsor indicating an intent to refine statutory language with stakeholders. No formal action was taken in the hearing.
