House Health Committee Advances Bill on Health Care Mergers and Acquisitions

Committee also OKs bills to support J-1 Visa program and Medicaid dental coverage

June 03, 2025

The House Health Committee today advanced a bill that would provide the Pennsylvania attorney general with additional oversight of health care-related transactions involving for-profit and investor-owned entities.

The legislation advanced by a 20–6 vote. During discussion, lawmakers emphasized the vote was a first step, but additional work was needed for a bill that would garner bipartisan support. 

In a letter to the committee, HAP advocated for changes that align state oversight with federal requirements that govern nonprofit hospital transactions. The letter stressed the importance of ensuring hospitals can pursue partnerships that support the delivery of modern and transformative health care.

“In the midst of considerable financial headwinds and policy uncertainty, Pennsylvania should not become an outlier that discourages routine transactions, joint ventures and partnerships that aim to add, not detract from access in communities,” the letter said.

The bill was approved after an amendment that shortened the timeframe for review; increased the review threshold for transactions from $5 million to $10 million; and removed practitioner organizations from the bill.

HAP did not support the legislation in its current form but remains committed to continued collaboration with lawmakers that results in legislation that better reflects the complexity of health care transactions, while balancing the ability for hospitals and health systems to engage partners to maintain access throughout communities across the commonwealth.

In other business, the committee also advanced House Bill 425, which would create a state grant program to assist hospitals and other health care employers in hiring physicians through the federal J-1 Visa Waiver program. The bill advanced 19–7.

The legislation would provide up to $100,000 per year for three years to support a physician’s salary in Health Professional Shortage Areas.

In its letter, HAP urged lawmakers to support the legislation to bolster the health care workforce.

“Meeting Pennsylvanians’ health care needs requires a stable, sufficient workforce in every community. House Bill 425 provides hospitals and other providers with a critical tool to attract and retain qualified physicians," the letter said.

The committee also advanced a bill that requires Medicaid coverage for dental services by a 22–4 margin.

For additional information, contact Arielle Chortanoff, vice president, state advocacy, or Sarah Lawver, HAP’s senior director, state advocacy.