Private equity firms and hedge funds would face new rules when doing business with medical groups in California as lawmakers raise concerns about the industry’s role in the health-care sector.
A measure (SB 351) proposed Feb. 12 would prohibit any private equity group involved in a physician or dental practice from controlling hiring, billing procedures, supplies, or a range of other matters.
The legislation is the latest effort by California lawmakers to curb private equity and hedge fund expansion into health care amid concerns about consolidation, cuts to staffing, and patient care.
“This bill is critical to protecting ...