California Gov. Gavin Newsome vetoed a bill that would have required private equity firms and hedge funds to give written notice before investing in the state's healthcare industry, including dentistry, according to a Sept. 28 news release from the governor's office.
Here are six things for dental industry leaders to know:
1. Under Assembly Bill 3129, the equity group or hedge fund involved with a dental practice would be prohibited from interfering with the professional judgment of the dentist.
2. In addition to written disclosure, the bill would have required the firm to obtain consent in some cases.
3. The Office of Health Care Affordability was created in 2022 to review healthcare consolidation transactions. The governor said it would be "more appropriate" for the OHCA to oversee consolidation instead of the new bill.
4. The OHCA does not have the ability to block a transaction, but can coordinate with other entities to refer transactions to the attorney general for review.
5. The bill would exempt transactions made by private equity firms and hedge funds that would currently be subject to review by the attorney general from OHCA existing review.
6. The California legislature passed the bill in September.