Q&A: Healthcare Attorney Skeptical of California’s New Private Equity Regulation

Healthcare attorney John Saran was interviewed in a Health Exec article where he shared concerns over California's Assembly Bill (AB) 3139 and its potential unintended consequences on the healthcare industry. If enacted, the law would require private equity groups and hedge funds to seek approval from the state attorney general to carry out transactions meeting certain criteria. Mr. Saran suggested that although intended to regulate private equity in healthcare more strictly, the law could inadvertently restrict access to care, increase costs for patients and hinder healthcare businesses' ability to raise capital for growth or technology investments. Highlighting the need for balanced regulation, he advocated for a dialogue that acknowledges the benefits of private equity, such as technological advancements and expanded patient services, to provide a well-rounded view of its role in the industry.

"But there are a lot of positives of private equity investment, from upgrades to technology to expanded services for patients. I think we need to balance the conversation and talk about some of the benefits, so the public can get a more comprehensive picture of what's happening," he said.

READ: Q&A: Healthcare Attorney Skeptical of California's New Private Equity Regulation