Healthcare Private Equity Reporting Act Signed into Law by Mass. Governor

Healthcare Transactions attorney John Saran was interviewed for a Health Exec article about a new law in Massachusetts adding financial reporting requirements for private equity investors in the state's healthcare industry. Gov. Maura Healey signed on Jan. 8, 2025, a bill granting regulators increased oversight of healthcare companies owned by private equity firms, along with imposing financial disclosure obligations on firms and hedge funds. Mr. Saran compared the new law, which was significantly pared down as it passed through the state legislature, with a vetoed bill in California that would have given the state attorney general authority to block transactions; the Massachusetts iteration does not go that far. He also advised businesses to review the law's definitions to see whether the provisions apply to them, especially for management services organizations (MSOs) that could be asked about their operations.

"This bill differs from California's vetoed private bill in that it raises the potential for transaction-based reporting, annual disclosures and the provision of testimony for [the Massachusetts] Health Policy Commission's annual hearings," he said. "With this focus on private equity-backed platforms, private equity sponsors should look at their portfolio companies with a Massachusetts presence to see if the updated framework applies."

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