State Oversight Reshapes Private Equity Healthcare Deals

Healthcare Transactions attorney John Saran was cited in a Modern Healthcare article about the effects of increased state-level regulation on private equity activity in the healthcare industry. Multiple states, including Illinois, California and Delaware, have passed laws in 2026 to amplify oversight of mergers and acquisitions (M&A) in the healthcare sector and boost transparency into the dealmaking process. The article also reported on which states saw healthcare transactions laws stall, such as a bill in Hawaii that would have implemented transaction review requirements, as well as identified vision, fertility, ambulatory surgery centers and clinical staffing as areas of focus for lawmakers. John warned the wave of legislative activity is unlikely to slow, and enforcement at the executive and judicial branches may also provoke additional action.

"A one-two punch of increased enforcement and attorney general actions may embolden other states," he told Modern Healthcare. He noted, however, that deal flow remains strong, as evidenced by his own work and that of his colleagues, and healthcare private equity will shift its business strategy in response to states' regulatory obligations.

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