California's Newsom Vetoes Bill to Rein in Healthcare Buyouts

Healthcare attorney John Saran was quoted in a Wall Street Journal Private-Equity article discussing how the recently vetoed California Assembly Bill 3129 would have affected private equity healthcare deals in the state. He noted that most platforms with a substantial presence in California would have faced challenges in selling their portfolio companies because of the introduction of stringent regulatory scrutiny and potential blocks on healthcare business acquisitions by private equity firms. Mr. Saran expressed skepticism regarding the prospects of future legislative efforts to regulate private equity acquisitions in healthcare, indicating that the political challenges encountered this year might increase the difficulty of passing similar measures going forward.

"Most platforms have a large California presence, and if you are looking to sell your portfolio companies you would have had to grapple with this," he said.

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