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By: David Marks, Doug Wolford from multinational law firm Holland & Knight LLP
Earlier this year, California Assembly Speaker Pro Tempore Jim Wood and Attorney General (AG) Rob Bonta sponsored and introduced California Assembly Bill (AB) 3129, which would subject a large swath of healthcare transactions and management arrangements involving private equity groups and hedge funds to new notice, review and approval requirements by the California AG. (See Holland & Knight's previous alert, "Private Equity Healthcare Transactions Under Scrutiny," March 14, 2024.) The bill seeks to empower the California AG, through several mechanisms involving both transaction approval, enforcement authorization and new statutory requirements for management services organizations (MSOs), to curtail what the sponsors deem to be "harmful transactions" in healthcare in California.
Since being initially heard in the Assembly Health and Judiciary Committee in March, AB 3129 has been amended to expand the scope of transactions subject to AG review beyond provider groups of physicians to now include dentists, mid-level providers, optometrists, pharmacists and licensed mental and behavioral health professionals. AB 3129 was subsequently passed in the California Assembly (50-16) on May 21, 2024, and now awaits deliberation this summer in the California Senate. If enacted, this legislation would require AG review and approval for transactions well beyond the scope of California's existin...................... To view our full article Click here
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