The Assembly Judiciary Committee has approved a bill (AB 3129) that aims to increase scrutiny on private equity firms and hedge funds purchasing California health-care facilities. This measure would give 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 approval of the bill on Tuesday means it stays on track ahead of a crucial legislative deadline on Friday, with the next step being a review by the Assembly Appropriations Committee.
The proposed legislation comes at a time when there is growing concern about the increasing presence of private equity in the health-care sector. This move seeks to address potential issues related to market competition and access to health care services in communities across California. By giving the attorney general the power to assess and potentially block certain transactions, the state hopes 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.
