California Takes Lead on Regulating Private Equity Health Deals

California legislation that would give the attorney general authority to block private equity firms’ moves into the health-care industry is seen as a potential model for other states looking to limit consolidation and protect patient care.

The bill (AB 3129), which the state’s Senate Judiciary Committee approved July 2, would authorize the attorney general to approve or deny an acquisition or change of control between a private equity firm and a health-care entity. The measure, which is supported by the state’s powerful medical trade associations and consumer advocacy groups, is set to go to the Senate Appropriations Committee ...