AB 1415 Increases Accountability on Private Equity Health Care Deals SACRAMENTO, CA – Health consumer advocates today applauded the passage of Assembly Bill 1415 (Bonta) out of the State Senate, which increases transparency of private equity health care deals. California’s landmark Office of Health Care Affordability (OHCA) plays a key role in reviewing increasingly complex […] The post Key Health Care Bill to Bring Transparency Over Health Care Mergers That Drive Higher Prices Passes the Senate appeared first on Health Access.
AB 1415 Increases Accountability on Private Equity Health Care Deals
SACRAMENTO, CA – Health consumer advocates today applauded the passage of Assembly Bill 1415 (Bonta) out of the State Senate, which increases transparency of private equity health care deals. California’s landmark Office of Health Care Affordability (OHCA) plays a key role in reviewing increasingly complex health care mergers that impact consumer access and affordability yet it does not have the whole picture when it comes to private equity deals.
While OHCA can review private equity health care mergers, they can’t require notice or collect information from private equity, hedge funds or management services organizations (MSOs) which are often involved in these mergers. This means OHCA only has a partial view of transactions in which private equity or hedge funds are involved, leaving a hole in assessing how a health care merger may impact consumers. AB 1415 will close this gap.
“AB 1415 gives California the tools to monitor powerful financial interests in health care, so we can protect patients, keep costs down, and make sure health care works for people, not just profits,” said Katie Van Deynze, Senior Policy & Legislative Advocate with Health Access California, the sponsor of AB 1415. “We applaud the Senate for passing this bill off the floor and thank Assemblymember Mia Bonta for authoring this important legislation.”
“I’m grateful that my colleagues in the Senate have sent a clear message that Californians want to know what’s going on with the billions of dollars of private equity in California healthcare. Private equity acquisitions of health care providers in California totaled over $4 billion between 2019 and 2023, accounting for one-third of all health care deals while driving up prices and driving down the quality of care. AB 1415 is a crucial step to close the gaps in the Office of Health Care Affordability’s oversight abilities,” said Assemblymember Mia Bonta (D-Oakland), author of AB 1415 and Chair of the Assembly Health Committee.
Between 2019 and 2023, Private equity acquisitions of health care providers in California totaled $4.31 billion — roughly a third of all health care deals but had little to no regulation or oversight at the state and federal level.
AB 1415 ensures that private equity, hedge funds and Management Service Organizations — all of which are currently operating with little oversight — are subject to cost and market impact reviews when they are involved in health care mergers and transactions that will impact costs for consumers.
AB 1415 now moves back to the California State Assembly for concurrence before heading to the Governor’s desk.
Press inquiries can be directed to Rachel Linn Gish, [email protected]
The post Key Health Care Bill to Bring Transparency Over Health Care Mergers That Drive Higher Prices Passes the Senate appeared first on Health Access.
