California Gov. Gavin Newsom signed a bill to block private equity groups and hedge funds from interfering with the healthcare decisions of dental and medical professionals.
The new law, which goes into effect Jan. 1, bars private equity groups and hedge funds from taking several actions against healthcare professionals, including imposing patient quotas, interfering in referral decisions, dictating procedures and diagnostic tests and limiting patient interaction times.
The bill was introduced earlier this year to address healthcare consolidation in the state and the increasing role of private equity interests, according to an Oct. 8 news release.
The bill was cosponsored by the California Dental Association and the California Medical Association.
