Lexology March 14, 2025
Duane Morris LLP

The California State Assembly recently introduced Assembly Bill 1415, which would require hedge funds, private equity groups, venture capital groups and other investment entities to comply with the requirements and face potential enforcement under the California Health Care Quality and Affordability Act. The Act requires covered providers to lower healthcare costs, establishes reporting requirements for certain marketplace transactions and subjects covered providers to penalties for violations. Investment entities—and healthcare practices contemplating transactions with such entities—should consider the potential implications of AB 1415 on any potential market transactions that could be affected by the legislation.

The California Health Care Quality and Affordability Act

The Act was passed in 2022 in response to rising healthcare costs, with the purpose of tasking a...

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