Cabaldon legislation to prioritize health care over profits clears Senate committee
SACRAMENTO (April 30, 2025) A bill by Sen. Christopher Cabaldon to prevent private equity investors from dictating health care decisions based on profit cleared its second policy committee Tuesday.
SB 351 is sponsored by the California Medical Association. It would strengthen California’s existing ban on the corporate practice of medicine by empowering the Attorney General’s office to investigate and bring action against private equity groups or hedge funds that interfere with or exert control over the practice of medicine.
The bill passed the Judiciary Committee Tuesday on a vote of 11-2 after clearing the Business & Professions Committee on April 21 on a 6-1 vote. It now heads to the Senate Appropriations Committee.
Sen. Cabaldon introduced SB 351 in response to growing concerns about the rapid pace at which private equity firms are acquiring control of medical and dental practices in California – a trend that has led to staffing shortages, costlier care, and less patient time with doctors.
“We’ve seen a 20-fold increase in private equity investment in health care over the last 15 years,” Sen. Cabaldon said. “That kind of activity deserves a modern set of enforcement tools – not to restrict the investment but to make sure it doesn’t compromise clinical integrity, patient outcomes, or drive up the costs to patients, providers, and government.”
Dr. Shannon Udovic-Constant, president of the CMA, said: “California’s patients deserve to know that medical decisions impacting their health are made in exam rooms, not boardrooms. SB 351 is a vital step to preserving trust in our health care system, safeguarding the integrity of the patient-physician relationship, and ensuring that decisions about a patient's health are driven solely by what is best for the patient – not by financial interests."
Responding to questions about why the bill focuses on private equity in particular, Cabaldon noted that private equity investors usually hold their medical investments for less than three years. “These are rapid-fire investments,” he said. “Our traditional methods of accountability can’t respond fast enough.”
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Senator Christopher Cabaldon represents the 3rd Senate District which includes the cities of Oakley and Brentwood in Contra Costa County; American Canyon, Calistoga, Napa, Yountville, and St. Helena in Napa County; Benicia, Dixon, Fairfield, Rio Vista, Suisun City, Vacaville, and Vallejo, in Solano County; Cotati, Rohnert Park, and Sonoma in Sonoma County; Davis, West Sacramento, Winters, and Woodland in Yolo County; as well as Isleton in Sacramento County.