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Lawsuit abuse threatens the future of rural behavioral health in PA

As the president of the Pennsylvania State Grange, a large rural advocacy organization, I have the honor of advocating to support some of Pennsylvania’s most vulnerable populations. From children with emotional and developmental needs to adults facing mental health challenges, the Grange’s mission is to ensure our rural populations have access to compassionate, evidence-based care that helps individuals thrive in their communities.

The mission of behavioral healthcare in rural Pennsylvania is becoming harder to fulfill. Not because of a lack of need or will, but because of the growing threat posed by lawsuit abuse in our Commonwealth.

Behavioral health providers already face a complex, highly regulated environment. State and federal requirements govern everything from billing practices to staffing ratios to facility management. Pennsylvania clinicians and administrators must carefully navigate these rules while delivering life-changing care. Even small, unintentional errors in documentation or coding, which are common in high-volume, human-centered services, can trigger costly investigations or litigation. That burden is magnified by the proposal currently under consideration in Harrisburg: the expansion of Pennsylvania’s False Claims Act through House Bill 1697.

Supporters of this legislation claim it would protect taxpayers. The reality is far more troubling. HB 1697 would create a powerful incentive for private trial lawyers to sue organizations even in the absence of fraud or malicious intent. These lawsuits wouldn’t be solely led by regulators with public interest in mind. It opens the door for attorneys chasing an outrageous settlement, taking a percentage of any judgment as their reward.

When providers must divert scarce resources toward legal defense, it means fewer resources for care. Fewer therapists. Longer wait times. Slower facility upgrades. These ripple effects hurt the very individuals that organizations are meant to help — children in crisis, adults rebuilding their lives, and families seeking stability.

Behavioral healthcare is essential in rural Pennsylvania where communities already have limited choices for mental health. Pennsylvania simply cannot afford to lose more providers. Expanding the False Claims Act would discourage providers from entering the field and could push some existing ones to reduce services or shut down altogether. That’s a devastating prospect for families who rely on the services.

Pennsylvania must resist efforts that turn our legal system into a tool for profit-driven litigation. We need policy solutions that support transparency, integrity, and genuine accountability, not mechanisms that punish good-faith actors over technicalities. Lawmakers should be strengthening behavioral health infrastructure, not creating new legal threats that undermine it.

We cannot let trial lawyers win this fight. The health and well-being of thousands of Pennsylvanians depend on a stable, fair system that enables care to flourish. Rejecting HB 1697 is a necessary step to protect our mission, our future, and the lives we’re entrusted to support.

Matthew Espenshade is the President of the Pennsylvania State Grange.

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