California has enacted AB 1415, a law requiring private equity and hedge fund investors to report planned healthcare acquisitions to the state’s Office of Health Care Affordability starting in January 2026. The measure complements SB 351, which empowers the state to penalize corporate investors that interfere with medical decision making in the practices they own.
While AB 1415 grants California the authority to review such transactions, it does not allow the state to block them. Comparable legislation has been proposed or enacted in Indiana, Maine, Massachusetts, Oregon, Washington, and other states.
The California Medical Association backed SB 351, citing growing concerns about private equity’s influence on patient care. Both laws aim to promote transparency, prevent anti-competitive consolidation, and curb investor practices that could undermine care quality or drive up costs.
At the federal level, agencies including the DOJ, FTC, and HHS have also intensified scrutiny, seeking more disclosure and coordination on healthcare consolidation nationwide. But across the U.S., these efforts have faced pushback from those who say that added regulation could discourage investment, particularly in rural or underserved areas.
