California Assembly Judiciary Committee Approves Bill to Increase Oversight of Private Equity in Health Care Sector

The Assembly Judiciary Committee has approved a bill (AB 3129) that would increase scrutiny on private equity firms and hedge funds purchasing California health-care facilities. This measure, which comes at a time of growing concern about the increasing presence of private equity in the health-care sector, aims to address potential issues related to market competition and access to health care services in communities across California. By granting the state’s attorney general the authority to prevent deals that are considered to have anticompetitive effects or significantly impact health-care access in a local community, the state seeks to protect consumers and ensure that the health-care industry operates in a fair and transparent manner.

The bill’s approval by the Assembly Judiciary Committee reflects a broader effort to regulate the activities of private equity firms and hedge funds in the health-care sector. With the measure now moving to the Assembly Appropriations Committee for further consideration, stakeholders will continue to monitor its progress and potential impact on the industry. As the debate around private equity’s role in health care intensifies, this legislation signals an ongoing effort to safeguard the interests of patients and communities in California.