California Bill Targets Private Equity in Healthcare
AB 3129 Aims to Address Industry Concerns
Bill Would Empower AG to Block PE Deals
A proposed bill in California would give the state's Attorney General (AG) the authority to block private equity (PE) firms from investing in the healthcare industry. Assembly Bill 3129 was introduced in February 2024 and aims to address concerns about the impact of PE on healthcare costs and quality.
PE investment in healthcare has grown significantly in recent years. In California, the value of PE health care deals grew more than twentyfold from 2005 to 2021. This growth has raised concerns among some stakeholders, who argue that PE firms are incentivized to prioritize profits over patient care.
AB 3129 would give the AG the authority to block PE deals that are deemed to be in violation of state law or that would have a negative impact on healthcare access, quality, or cost. The bill also includes provisions that would increase transparency in PE investments and establish a registry of PE-owned healthcare facilities.
The bill has been co-sponsored by California Attorney General Rob Bonta and Assembly Speaker Pro Tempore Jim Wood. It is currently being considered by the Assembly Health Committee.
California Health Care Foundation
Https Www Chcf Org Publication Private Equity In Health Care Prevalence Impact And Policy Options For California And The U S
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