Private equity firms and hedge funds seeking to acquire health-care facilities in California are facing increased scrutiny following the approval of a new bill by a key legislative committee. The measure, 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.
This move comes as private equity’s involvement in the health-care sector is being closely examined by lawmakers and regulators. The bill 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.
As stakeholders from various sectors provide input and feedback on its provisions, the bill seeks to protect the interests of California residents and ensure that their health-care needs are met. The ultimate 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.
With this development, private equity firms will need to be more cautious when entering into deals involving healthcare facilities in California. They will need to consider how their actions may affect local communities and whether they can ensure that their investments align with the state’s goals for healthcare accessibility and affordability.
