California AG Urges Walling Off Medical Practices from Private Equity

Healthcare Transactions attorney John Saran was cited in a Wall Street Journal Pro Private Equity article examining California Attorney General Rob Bonta's efforts to enforce the state's new corporate practice of medicine (CPOM) law, which bans private equity and other outside investors from making hiring or firing decisions for the medical practices in which they invest. Mr. Saran pointed out that following Bonta's approach would make California have the strictest CPOM prohibition in the country, with significant implications for private equity healthcare investors and management services organization (MSO) models. He also compared initiatives in the Golden State with state-level scrutiny of private equity involvement in the healthcare sector in other jurisdictions, commenting that legislative efforts in 2026 have been less successful and most bills have stalled.

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