California law limits private equity influence on healthcare businesses

California has enacted tougher rules preventing corporate investors like PE firms from meddling in the healthcare decisions of provider firms.

California Governor Gavin Newsom has just signed into law Senate Bill 351, which prohibits private equity groups and hedge funds from interfering with the professional judgement of physicians or dentists in making healthcare decisions and from exercising power over specified clinical activities. 

The bill was passed with strong majorities by

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