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- Big Moves in Healthcare 🏥, Medicaid Cuts Loom 📉, and FinCEN Hits Pause ⏸️—What You Need to Know
Big Moves in Healthcare 🏥, Medicaid Cuts Loom 📉, and FinCEN Hits Pause ⏸️—What You Need to Know
California is cracking down on private equity in healthcare 🏥💸, Congress is eyeing Medicaid for budget cuts 📉, and FinCEN is putting BOI reporting on hold ⏸️. If you like legal drama with a side of policy shake-ups, this one’s for you!
California Moves to Rein in Private Equity’s Grip on Healthcare
California’s Senate Bill 351 (SB 351) seeks to establish stricter boundaries on private equity and hedge fund involvement in physician and dental practices, reinforcing existing prohibitions against non-licensed entities exerting control over clinical decision-making.
Key Points
SB 351 prohibits ✋🏻 private equity and hedge funds from influencing physicians' and dentists' clinical decisions.
Non-compete and non-disparagement clauses in private equity contracts with medical practices would be barred.
The attorney general would gain enforcement authority, adding oversight beyond state medical and dental boards.
Why It Matters
With private equity’s growing footprint 👣 in healthcare, SB 351 aims to safeguard medical professionals' autonomy by banning external interference in patient care decisions and prohibiting restrictive non-compete and non-disparagement clauses. While this builds on California’s corporate practice of medicine rules, it signals heightened scrutiny and regulatory oversight.
Takeaway
If enacted, SB 351 will add another layer of regulatory enforcement, empowering the attorney general to pursue violations. Healthcare investors and practice owners should closely monitor this bill’s progress and assess its implications on existing and future transactions.