California Revives SB 351 to Limit Private Equity in Healthcare

California lawmakers have introduced Senate Bill 351 (SB 351), aimed at regulating private equity and hedge fund involvement in physician and dental practices. The bill seeks to ensure that healthcare providers retain control over clinical decision-making and prohibits investors from interfering with essential operational aspects such as hiring and patient care. This legislation follows the veto of Assembly Bill 3129, which attempted to impose similar restrictions last year. SB 351 also includes provisions against management agreement clauses that restrict professionals from competing or discussing quality of care issues. The move reflects growing concerns about the impact of private equity on healthcare quality and accessibility in California. Experts note this trend is part of a broader national scrutiny of private equity's role in critical sectors like healthcare and child care.