Over the weekend, Governor Gavin Newsom signed Assembly Bill 1415 (Bonta) into law, a critical measure that improves the state’s ability to review health care industry transactions and ensure the state, communities, researchers and policymakers have the full view of the potential impacts. Health Access, the statewide health care advocacy coalition, praised Governor Newsom for […] The post Health Advocates Applaud Governor Newsom for Signing AB 1415 to Increase Transparency over Health Care Mergers appeared first on Health Access.
Over the weekend, Governor Gavin Newsom signed Assembly Bill 1415 (Bonta) into law, a critical measure that improves the state’s ability to review health care industry transactions and ensure the state, communities, researchers and policymakers have the full view of the potential impacts. Health Access, the statewide health care advocacy coalition, praised Governor Newsom for signing the new law to help health care consumers.
AB 1415 ensures that private equity firms, hedge funds, and management services organizations (MSOs) notice and provide information to the Office of Health Care Affordability (OHCA) when they are involved in health care mergers. This will allow for Cost and Market Impact Reviews (CMIRs), closing a loophole that left the private equity transactions unexamined. In addition to reviewing health care mergers for their impacts, OHCA, created in 2022, is charged with slowing health care cost growth, improving equity, and promoting access to primary and behavioral health care across California.
“By signing AB 1415 today, Governor Newsom has better ensured that consumers and the state understand the impacts of private equity deals in health care on our communities and health care system,” said Katie Van Deynze, Senior Policy and Legislative Advocate for Health Access CA. “California’s Office of Health Care Affordability now has the needed authority to fully review private equity mergers in health care for potential harm to consumers. Private equity groups often treat our hospitals and doctors’ offices like any other asset, maximizing profits for their investors at the expense of patients’ access and ability to afford care. This new law will ensure that communities have the full picture of these transactions before they happen, what it means for their health care, and hold the new owners accountable to promises made about benefits for the community.”
“Californians deserve a full picture of the billions spent annually in our health care system by large private equity firms. AB 1415 ensures that our Office of Health Care Affordability has the authority to monitor these transactions and protect patients from rising costs and reduced access to care,” said Assemblymember Mia Bonta. “Access to affordable, high-quality care is essential for Californians across the state, and I’m proud to see this bill signed into law to deliver on that promise.”
Research shows that health care mergers often lead to higher prices without improving quality or outcomes, and private equity acquisitions can create dangerous incentives to cut corners on care while raising costs. AB 1415 gives OHCA the tools to collect data, conduct thorough reviews of these transactions, and shine a light on deals that impact affordability and access.
Health Access thanks Governor Newsom and Assemblymember Mia Bonta for advancing this landmark law, which will help ensure California’s health system works for patients, not profit.
The new law will go into effect on January 1, 2026.
Press inquiries can be directed to Rachel Linn Gish, [email protected]
The post Health Advocates Applaud Governor Newsom for Signing AB 1415 to Increase Transparency over Health Care Mergers appeared first on Health Access.
