Newsom Vetoes Bill to Regulate Private Equity Transactions in Healthcare

Healthcare attorney John Saran was quoted in a HealthExec article discussing California Gov. Gavin Newsom's decision to veto Assembly Bill 3129, which would have given the state's attorney general oversight of private equity transactions in the healthcare industry. The bill would have required private equity firms and hedge funds to submit details of healthcare transactions for approval, in an effort to ensure alignment with public interests. Newsom argued that the bill was unnecessary because the Office of Health Care Affordability (OHCA) already reviews healthcare consolidation transactions and can coordinate with the attorney general when needed.

"Redundancy was the reason that AB 3129 failed — Gov. Newsom thought it more appropriate for the OHCA to oversee consolidation in California," Mr. Saran said, adding that this year OHCA has already "reviewed several healthcare transactions in California and just updated its regulations in August to expand the reach of the transaction review requirements."

READ: Newsom Vetoes Bill to Regulate Private Equity Transactions in Healthcare