Summary
The article discusses the impact of private equity (PE) firms buying hospitals and the new regulations in California that will review these health care deals. It explains that starting January 1, California will require any health care transaction involving PE firms to be reviewed to ensure they don't negatively influence patient care.
Key Facts
- Private equity firms often invest in hospitals, which some studies associate with lower care quality and higher costs.
- To manage these concerns, 14 U.S. states have laws to review health care deals before they happen.
- Starting January 1, California will review health care transactions involving private equity and hedge funds.
- The goal is to prevent profit motives from harming patient care.
- The law requires health care entities to notify the state 90 days before a transaction, potentially causing delays.
- This review process will make transaction details public on California's website.
- Experts expect fewer health care deals in California after the law takes effect due to increased scrutiny.
