S. 2989 — Stop MPT Act

This section prohibits a health care entity or covered firm from entering an agreement to sell to or lease from a real estate investment trust an interest in real property if the terms would lead to long-term weakened financial status of the health care entity or place public health at risk. It requires such entities to submit agreement terms to the Secretary of Health and Human Services for review under that standard, with authority for the Secretary to consult the relevant state attorney general; it further authorizes attorneys designated by the Secretary to represent the department in related civil actions, except as provided in 28 U.S.C. 518 (requiring the Attorney General or Solicitor General to conduct Supreme Court cases in which the United States is interested). For enforcement, states may act directly, with the Secretary stepping in via civil monetary penalties of up to $10,000 per violation if a state fails to substantially enforce; the section does not supersede state law except to the extent it prevents application of this section. It defines health care entity (e.g., hospital, physician practice, skilled nursing facility, Medicare-enrolled provider), covered firm (for-profit corporation owning or affiliated with a health care entity), corporation, and affiliate (generally involving 20% or more ownership, control, or voting power).

This section modifies the definition of rents from real property for real estate investment trust (REIT) qualification purposes under IRC §856(d)(2) by adding a new subparagraph (D) to include amounts received or accrued directly or indirectly from qualified health care property (as defined in §856(e)(6)(D)(i)), notwithstanding paragraphs (4) (related-party rents), (6) (services), and (8) (health care properties). It makes conforming amendments to §§856(d)(8)(B) and (d)(9) by removing prior references to qualified health care property. The changes apply to taxable years beginning after enactment.