California Senate Backs Oversight of Private Equity in Health

California regulators would get more oversight of private equity transactions in the health-care industry under a bill passed by the state Senate on Thursday.

Senators voted 26-10 for the (AB 1415) measure that would require private equity firms and hedge funds to give the state’s Office of Health Care Affordability advance notice of certain deals, such as the sale of a nursing home or purchase of a management services organization—a company that runs the back-office of a medical practice.

State lawmakers argue the bill sponsored by Assemblymember Mia Bonta (D) will help curb consolidation in the health-care sector, ...