Rep. Scanlon introduces bill in U.S. House to restrict Medicare access for certain hospital owners

The new bill authored by U.S. Rep. Mary Gay Scanlon in the U.S. House aims to limit Medicare participation for hospitals and nursing facilities owned by private equity or real estate firms, according to the U.S. Congress.

H.R.7920 was introduced on March 12, 2026 during the 2026 regular session of the 119th Congress. The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill aims to amend the Social Security Act, specifically targeting hospitals and skilled nursing facilities owned or controlled by certain firms. It prohibits these facilities from participating in Medicare, imposing a three-year grace period for those already owned by a covered firm at the time of enactment. Covered firms include private equity funds and real estate investment trusts. The bill outlines provisions for notice, hearings, and joint liability for penalties associated with violations. If passed, it seeks to reshape the landscape of healthcare ownership by restricting Medicare access to specific entities, thereby affecting how certain firms operate within the health system.

The bill was introduced by Rep. Mary Gay Scanlon (Democrat-PA-5th District) and co-sponsored by Rep. Rosa L. DeLauro (Democrat-PA-3rd District), Rep. Christopher R. Deluzio (Democrat-PA-17th District), and Rep. Pramila Jayapal (Democrat-PA-7th District), along with three other sponsors.

Since the beginning of the current session, Rep. Scanlon has introduced another five bills.

A related bill, S.4085, was also introduced in the Senate on March 12, 2026. Congressional records list it as an identical companion bill to H.R.7920.

Congressional bills can originate in either the U.S. House of Representatives or the U.S. Senate, except for revenue-related measures, which must begin in the House. After introduction, bills are assigned to committees for review, hearings, amendments and debate before they can advance to a vote in each chamber. If both chambers approve identical versions, the legislation is sent to the president, who may sign it into law or veto it. Congress operates in two-year terms, with each term numbered sequentially and divided into two annual sessions. The legislative process and official bill records are maintained by the U.S. Congress and published through Congress.gov.

Mary Gay Scanlon is a Representative from Pennsylvania. She graduated with a B.A. from Colgate University in 1980 and earned a J.D. from the University of Pennsylvania in 1984.

Scanlon served on the Wallingford-Swarthmore school board from 2007 to 2015, including a term as president from 2009 to 2011. She was elected as a Democrat to the One Hundred Fifteenth and One Hundred Sixteenth Congresses by special election and has been reelected to three succeeding Congresses.

Information in this article was obtained from the U.S. Congress. The source data can be found here.