California Eyes Oversight of Private Equity Health Care Deals

Private equity firms and hedge funds would need approval from California’s attorney general to buy health care facilities in the state if legislators approve a proposal to expand oversight of the industry.

The measure (A.B. 3129) comes amid mounting scrutiny of private equity’s expansion into health care over the last decade, a boom that has seen firms buy hundreds of hospitals as well as nursing homes and provider groups.

The bill’s author, Assembly Speaker Pro Tempore Jim Wood (D), said such deals deserve more scrutiny to understand how competition, costs, and the quality of care could be effected. ...