"On October 6, California enacted legislation (Senate Bill 351) that restricts financial firms' ability to influence how physicians in practices they own treat patients. It prohibits the firms from setting the number of patients doctors are expected to see, determining what diagnostic tests are required or what equipment the practice uses, or using 'non-compete' clauses in doctors' contracts that prevent them from practicing medicine in their communities for a period of time after their current employment ends."
"OHCA formerly required health care entities to submit written notice of any transaction that results in a material change in ownership or control of the entity. The new legislation extends that requirement to private equity groups, hedge funds and management services organizations (MSOs) that will now be required to provide notice and submit financial information when engaged in a transfer of control over a health care entity."
California enacted two laws in October that limit financial firms' influence over physician practices and expand transaction oversight. Senate Bill 351 bars owners from dictating patient volumes, required diagnostic tests, equipment choices, and from imposing 'non-compete' clauses that inhibit doctors from practicing in their communities after employment ends. Assembly Bill 1415 expands the Office of Health Care Affordability review process to require private equity groups, hedge funds, and management services organizations to provide notice and financial information for transfers of control and to report planned sales, leases, transfers, or disposals of material assets. The measures respond to concerns about loss of physician autonomy and financialization of care.
Read at Truthout
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