Senator Cabaldon introduces bill to curtail private equity influence in our state’s health care system
SACRAMENTO – Senator Christopher Cabaldon today introduced a bill aimed at strengthening California’s existing ban on the corporate practice of medicine. Senate Bill 351 will restore trust in California’s healthcare system and ensure that physicians maintain autonomy in patient care.
SB 351 addresses a growing concern about the rapid increase in private equity acquisitions of healthcare practices – which have led to staffing shortages, costlier care, and cutbacks in face time with doctors – by empowering the Attorney General’s office to investigate and intervene in cases where private equity firms unduly influence medical care.
“The health of Californians should never be compromised by the pursuit of profit,” said Senator Cabaldon. “Private equity firms are increasingly infiltrating our healthcare system, often dictating care to meet financial goals rather than patient needs. SB 351 gives the Attorney General the authority necessary to hold these entities accountable and protect the integrity of our health care system….constituents should be assured that health care coverage is in the best interest of the patient, not hedge fund shareholders.”
President of the California Medical Association (CMA) Shannon Udovic-Constant, M.D. (a practicing pediatrician), praised the bill.
“The financial interests of private equity firms are often in direct conflict with the ethical and professional standards for quality medical care,” said Dr. Udovic-Constant. “This bill is critical to protecting the physician-patient relationship and ensuring that decisions about patient care are made by doctors – not by financial groups looking to maximize profits.” CMA, which represents more than 50,000 California physicians, is a sponsor of the bill.
SB 351 empowers the AG to bring action against private equity groups or hedge funds that interfere with or exert control over the practice of medicine. This legislation ensures that health care decisions are determined by patients and physicians rather than by profits.
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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.