In the Loop: Cali Bills

Healthcare Transactions attorney John Saran was cited in Private Funds CFO commenting on California's revived effort to rein in private fund involvement in healthcare. He mentioned that Senate Bill (SB) 351 broadens the state's corporate practice of medicine regulatory framework by allowing the attorney general to bring actions against private equity and hedge fund sponsors that influence clinical decisions, in addition to invalidating certain noncompete and confidentiality clauses, while Assembly Bill (AB) 1415 places managed service organizations (MSOs) under the oversight of the Office of Health Care Affordability. He recommended that fund managers stay proactive, including revisiting restrictive covenant language now to align with the new requirements.

"I would warn against taking a backseat for what might come after this because, if there's 10 new bills proposed next year, and five of them look like Oregon's, and five of them look like California's, it would be significant for the industry and anyone with national platforms," he said.

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