The California Medical Association (CMA) announced that Senate Bill 351, which it sponsored and was authored by Senator Christopher Cabaldon, has been approved by the Legislature and will move to the Governor for consideration. The bill aims to reinforce California’s existing ban on the corporate practice of medicine and address concerns about private equity and hedge fund involvement in health care.
SB 351 gives the Attorney General authority to act against corporate entities that interfere with medical practice. This is intended to ensure that decisions about patient care are made by physicians rather than influenced by financial interests. Nationally, there have been concerns that private equity ownership in health care can lead to increased costs, lower quality of care, and reduced access for patients. More information on these national trends can be found at https://www.nytimes.com/2023/11/13/health/private-equity-medicine.html.
“SB 351 is about protecting the integrity of the physician-patient relationship and making sure that health care decisions are guided by what is best for patients, not what maximizes profits,” said CMA President Shannon Udovic-Constant, M.D. “We are grateful to Senator Cabaldon for his leadership on this critical issue and applaud the Legislature for recognizing the urgent need to safeguard medical decision-making from corporate interference.”
The bill passed unanimously in the Assembly with 80 votes in favor and received 32 yes votes in the Senate. CMA has a history of supporting California’s corporate bar, which prevents corporations from influencing clinical decisions. SB 351 expands on this policy by providing new enforcement tools aimed at deterring violations and protecting patients.
