March 07, 2025 | Sacramento, CA — MedLegalNews.com — Private Equity Influence in Health Care: The California Medical Association (CMA) is backing a new bill to reinforce California’s existing ban on the corporate practice of medicine. SB 351, introduced by State Sen. Christopher Cabaldon (D-West Sacramento), aims to restore trust in the state’s health care system by ensuring that physicians—not corporate investors—retain autonomy in patient care.
Protecting Physician Autonomy – Private Equity Influence in Health Care
SB 351 grants the California Attorney General’s office greater authority to investigate and intervene when private equity firms exert undue influence over medical decisions. The bill safeguards patients by ensuring that medical care is based on clinical judgment, not financial incentives.
CMA President Shannon Udovic-Constant, M.D., emphasized the urgency of this reform:
“The financial interests of private equity firms are often in direct conflict with the ethical and professional standards for quality medical care. This bill is critical to protecting the physician-patient relationship and ensuring that decisions about patient care are made by doctors—not by financial groups looking to maximize profits.”
Why It Matters
Private equity ownership in health care has surged in recent years, often prioritizing cost-cutting measures and profitability over patient outcomes and physician autonomy. SB 351 seeks to prevent these conflicts of interest and uphold the integrity of medical decision-making in California.
For verified updates on corporate ownership in medicine and physician autonomy, visit the California Medical Association (CMA).
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FAQs: Private Equity Influence in Health Care
What is private equity influence in health care?
Private equity influence in health care refers to investment firms acquiring medical practices or hospitals and using financial incentives that can conflict with patient care priorities.
Why is the CMA concerned about private equity influence in health care?
The CMA warns that private equity influence in health care undermines physician autonomy, potentially prioritizing profits over patient outcomes and ethical care.
How does SB 351 address private equity influence in health care?
SB 351 strengthens California’s ban on the corporate practice of medicine, empowering the Attorney General to investigate improper financial control by private equity firms.
What could happen if private equity influence in health care continues unchecked?
Without reform, physicians could lose independence in clinical decisions, and patient care may become increasingly driven by profit motives rather than medical need.