,,ii  #aai? ,,congress  #b;d ,session   
,s4 #djhe  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #ab1 #bjbf,mr4    
,murphy 7= himself1 ,mr4 ,blum5?al1 &   
,mr4 ,m]kley7 introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d title ,,xviii ( ! ,social ,security
 ,act to prev5t hospitals or skill$     
nurs+ facilities t are own$ by c]ta9    
firms f p>ticipat+ 9 ! ,m$ic>e program4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,take ,back ,our ,hospitals ,act (    
#bjbf4  #b4 ,prev5t+ hospitals & skill$ 
nurs+ facilities own$ by c]ta9 firms f  
p>ticipat+ 9 ,m$ic>e ,section #ahfb ( ! 
,social ,security ,act 7#db ,u4,s4,c4   
#aciey7 is am5d$ by add+ at ! end !     
foll[+ new subsection3  7p7 ,prohibition
 on paym5ts to hospitals & skill$ nurs+ 
facilities own$ by c]ta9 firms  7#a7 ,9 
g5]al  7,a7 ,prohibition ,no paym5t may 
be made "u ?is title to a hospital or   
skill$ nurs+ facility t is own$ or      
controll$ by a cov]$ firm or an         

affiliate ( a cov]$ firm4  7,b7         
,exception ,if1 on ! date ( enactm5t (  
?is subsection1 a hospital or skill$    
nurs+ facility is own$ or controll$ by a
 cov]$ firm or an affiliate ( su* a     
firm1 su* hospital or skill$ nurs+      
facility %all n be consid]$ 9 violation 
( subp>agraph 7,a7 until ! date t is #c 
ye>s aft] su* date ( enactm5t4  7#b7    
,notice1 he>+1 & judicial review ,any   
hospital or skill$ nurs+ facility f\nd  
to be 9 violation ( p>agraph 7#a7 %all  
be entitl$ to reasonable notice &       
opportunity = he>+ z describ$ 9 section 
#aabh7;f74  7#c7 ,jo9t & sev]al         
liability ,a cov]$ firm or an affiliate 
( su* a firm t owns or is an affiliate (
 a hospital or skill$ nurs+ facility t  
is 9 violation ( p>agraph 7#a7 %all be  
jo9tly & sev]ally liable = any p5alty or
 obligation su* hospital or skill$ nurs+
 facility receives = su* violation4     
7#d7 ,def9itions ,9 ?is subsection3 7,a7
 ,affiliate ,! t]m affiliate means an   
entity t controls1 is controll$ by1 or  

is "u common control ) ano!r entity4    
7,b7 ,control  7i7 ,9 g5]al ,! t]m      
control means to possess ! p[]1 directly
 or indirectly1 to direct1 or cause !   
direction (1 ! managem5t1 adm9i/rative  
functions1 assets1 or policies ( an     
entity ?r\gh own+ vot+ securities 9 su* 
entity1 contract+ ) su* entity 7except =
 contract+ ) su* entity = goods or      
non-managem5t s]vices71 or o!r simil>   
means1 z det]m9$ by ! ,secret>y4  7ii7  
,vot+ securities ,a p]son %all be       
consid]$ to control an entity if su*    
p]son directly or indirectly owns1 has  
rights ov]1 or holds ) ! p[] to vote1   
#aj p]c5t or m ( ! vot+ securities ( su*
 entity4  7,c7 ,corporation ,! t]m      
corporation means-- 7i7 a jo9t-/ock     
company2  7ii7 a company or p>tn]%ip    
association organiz$ "u a law t makes   
only ! capital subscrib$ or callable up 
to a specifi$ am\nt responsible = !     
debts ( ! company or p>tn]%ip           
association1 & includes a limit$        
p>tn]%ip & a limit$ liability company2  

7iii7 a tru/2 or  7iv7 an association   
t-- 7,i7 possesses ! p[] or privilege ( 
a private corporation "u ,/ate law2 &   
7,,ii7 does n possess ! p[] or privilege
 ( a sole proprietor%ip or p>tn]%ip "u  
,/ate law4  7,d7 ,cov]$ firm ,! t]m     
cov]$ firm means-- 7i7 a private equity 
fund2  7ii7 a corporation t is own$ or  
controll$ by a private equity fund2 or  
7iii7 a real e/ate inve/m5t tru/4  7,e7 
,private equity fund ,! t]m private     
equity fund means a p]son :o-- 7i7 w\ld 
be consid]$ an inve/m5t company "u      
section #c ( ! ,inve/m5t ,company ,act (
 #aidj 7#ae ,u4,s4,c4 #hj;a-#c7 b = !   
application ( p>agraph 7#a7 or 7#g7 (   
subsection 7c7 ( su* section2 &  7ii7   
directly1 or ?r\gh an affiliate1 acts z 
a control p]son ( su* company4  7,f7    
,real e/ate inve/m5t tru/ ,! t]m real   
e/ate inve/m5t tru/ has ! mean+ giv5 su*
 t]m 9 section #hef ( ! ,int]nal ,rev5ue
 ,code ( #aihf4  4