Lexology April 16, 2024
A recently introduced California Assembly Bill (AB 3129), targeting private equity (PE) physician practice investments, is currently making its way through the legislative process. Introduced by California Attorney General (AG) Rob Bonta and Assembly Speaker pro Tempore Jim Wood, the bill seeks to curtail “harmful transactions” and “practices that undermine the practice of medicine” by granting the AG approval authority over PE groups’ physician practice acquisitions and imposing substantial restrictions on their ability to control acquired practices. If enacted, the bill’s pre-closing approval requirements could significantly delay, if not altogether stymie, PE group acquisitions (and potentially divestitures) of California physician practices. Beyond the transaction process itself, the bill’s proposed restrictions on the management and control of physician practices by PE...
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