Private equity firms and hedge funds looking to purchase health-care facilities in California will face increased scrutiny under a new measure approved by a key legislative committee on Tuesday. The bill, called AB 3129, would 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.
The Assembly Judiciary Committee’s approval of the bill on Tuesday 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 seeks 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 aims to protect the interests of California residents and ensure that their health-care needs are met.
As the bill moves forward, stakeholders from various sectors will have the opportunity to provide input and feedback on its provisions. This collaborative process will help to refine the legislation and ensure that it effectively addresses the 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 the interests of patients and communities across the state.