For-profit hospitals would be exempt from legislation requiring private-equity firms and hedge funds to get approval from California’s attorney general before buying health-care facilities in the state.
The newly agreed exemption helped smooth the bill’s approval in a key legislative committee Tuesday amid lobbying and advertising against the measure by industry groups.
Backers argue the legislation would put a check on consolidation in the health-care industry, contending such short-term investors have driven up prices for patients.
Hospitals have pushed to stop or at least narrow the bill, arguing that requiring deals to get approval from the attorney general would make ...