New Bill Grants Attorney General Authority to Block Private Equity Transactions in Health-Care Facilities in California

Health-care facilities in California may soon face increased scrutiny from private equity firms and hedge funds, as a new measure approved by a key legislative committee on Tuesday seeks to protect the interests of residents and ensure that their health-care needs are met. The bill, called AB 3129, grants the state’s attorney general the authority to intervene and block transactions that have anticompetitive effects or could significantly impact health-care access in a specific community.

The Assembly Judiciary Committee’s approval of the bill ensures that it will progress to the next stage in the legislative process, with the Assembly Appropriations Committee being the next stop. This development comes as private equity’s involvement in the health-care sector is facing closer examination by lawmakers and regulators.

The measure aims to address concerns about the potential negative consequences of private equity firms and hedge funds acquiring health-care facilities, such as rising costs, reduced quality of care, and limited access for certain populations. By giving the attorney general the ability to review and potentially block transactions that raise these issues, the bill seeks to protect the interests of California residents and ensure that their health-care needs are met.

As stakeholders from various sectors continue to provide input and feedback on its provisions, this collaborative process will help refine the legislation and strike a balance between promoting innovation and investment in health care while safeguarding patients’ interests. Ultimately, this bill seeks to promote transparency, accountability, and fairness in private equity’s involvement in California’s health-care sector.