New legislation is set to increase scrutiny on private equity firms and hedge funds looking to purchase health-care facilities in California. The bill, AB 3129, was approved by a key legislative committee on Tuesday and will grant the state’s attorney general the authority to intervene and block transactions that are found to have anticompetitive effects or could significantly impact health-care access in a specific community.
This development comes as private equity’s involvement in the health-care sector is facing closer examination by lawmakers and regulators. Private equity firms have been accused of raising costs, reducing the quality of care, and limiting access for certain populations. By giving the attorney general the ability to review and potentially block transactions that raise these issues, the bill aims to protect the interests of California residents and ensure that their health-care needs are met.
As stakeholders from various sectors provide input and feedback on its provisions, this collaborative process will help refine the legislation and ensure it effectively addresses challenges posed by private equity’s increasing influence in the health-care industry. Ultimately, the goal is to strike a balance between promoting innovation and investment in health care while safeguarding patients’ interests across California.
