Massachusetts lawmakers demand transparency as hospitals funnel $1.6B into offshore accounts

Legislators in Massachusetts are reviewing a bill aimed at requiring hospitals to publicly disclose their assets and profits, including offshore accounts, as well as limit CEO pay, according to The Milford Daily News.

Sixteen hospitals and health systems in Massachusetts have more than $1.6 billion in the Cayman Islands and other tax havens, according to a report issued by the Massachusetts Nurses Association. The bill, called the Hospital Profit Transparency and Fairness Act, targets these accounts. The bill's co-sponsors, state Sen. Michael Moore, D-Millbury, and Rep. Josh Cutler, D-Duxbury, said much of the money is Medicaid and Medicare dollars and belongs to taxpayers.

Should the bill be approved, hospitals in Massachusetts that receive funds from the state must report all of their financial assets, on- and offshore, to the state Center for Health Information and Analysis. Then, the Center would disclose the information within seven days.

Critics of the legislation, including the Massachusetts Health & Hospital Association, say hospitals are already transparent about their investments and that the offshore captive insurance accounts are standard business practice and reported to the IRS.