On October 6, 2025, Governor Newsom signed into law Senate Bill 351 (SB 351), introducing new restrictions on private equity and hedge fund involvement in physician and dental practices across California. Effective January 1, 2026, this law directly targets non-clinical control over clinical decision-making, voids certain contractual provisions, and empowers the California Attorney General with robust enforcement tools, including injunctive relief and fee-shifting remedies. For private equity sponsors, SB 351 significantly increases compliance risks and requires a thorough reexamination of ownership, governance, and contracting structures for California-based platforms.
Read the full article: California’s New Restrictions on Private Equity in Health Care: What Health Providers and Investors Need to Know //
Source: https://www.lexology.com/library/detail.aspx?g=c14e4f3e-e1f8-4fa5-ae19-9b4b61f04ef0