Four More States Weigh Bans on Private Equity Interference in Medical Care

Healthcare Transactions attorney John Saran was cited in a WSJ Pro article summarizing new state legislative proposals to increase regulation of private equity in healthcare. New bills in Washington, New Mexico, Vermont and Maine amplify restrictions on the corporate practice of medicine and impose pre-merger review requirements. Mr. Saran pointed out that Colorado, Hawaii, Indiana, New York and Rhode Island have also introduced similar proposals, part of the next wave of legislation targeting private equity involvement in the healthcare industry. Trade groups such as the Association for Responsible Healthcare Investment and American Investment Council were also highlighted in the article; the Association for Responsible Healthcare Investment's chief executive called for collaboration between firms and lawmakers to identify and hold accountable bad actors, and the American Investment Council contended private equity capital ultimately benefits patients through funding research, modernization and expansion. Mr. Saran commented that it's not yet clear how many of the bills will become law, but he did underline Vermont's bill as one of the most impactful for its ban on using debt in private equity medical acquisitions.

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