“The most influential players in the health industry are fighting over a controversial plan to let the attorney general block hedge funds and private equity firms from acquiring health care facilities,” Ryan Sabalow writes over at Cal Matters. “The Legislature’s analysis of the bill says ‘private equity acquisitions in health care have exploded’ and studies show that the trend results ‘in higher health care costs, poor quality and less access to care.’ ‘We believe that the health care system should serve patients,” Attorney General Rob Bonta said when the bill was introduced in February. ‘Too often, private equity has served corporate profiteers by maximizing their profits at the expense of access, quality, and affordability of health care for Californians.’ The battle involves some of the heaviest hitters in the state’s big-money political influence game. In one corner: Hospitals, the California Chamber of Commerce and private equity investment firms. Joining Bonta in the other are groups representing hospital workers at every level: The state’s physicians’ association, nurses and public employee unions. Combined, the groups and their affiliates have given more $4 million to sitting legislators’ reelection campaigns in the past two years, according to the Digital Democracy database. Since its introduction in February, the bill has coasted through two Democratic-controlled Assembly committees on party-line votes, but that’s no guarantee it will reach Gov. Gavin Newsom’s desk. Several previous attempts at similar legislation died quietly. This year’s legislation, Assembly Bill 3129, is authored by Assembly’s second-highest ranking Democrat, Jim Wood. The dentist and former Healdsburg mayor has announced he’s leaving office at the end of this year. Before he leaves, he said he feels it’s important to appoint a watchdog to prevent hedge funds and private equity firms from buying large health care institutions and squeezing them for profits at the expense of patients.” Ryan Sabalow, “Doctors vs. hospitals: A bid to regulate hedge funds is dividing California medical groups,” CalMatters.
