SB 351 (Cabaldon, D-Napa)

SB 351 would prohibit a private equity group or hedge fund involved in any manner with a physician or dental practice doing business in California from interfering with the professional judgment of physicians or dentists in making health care decisions and exercising power over actions (e.g., making decisions regarding coding and billing procedures for patient care services). As amended June 16, the bill now expressly excludes hospitals, hospital systems, and any entity managed or controlled by a hospital or hospital system from the definition of private equity group or hedge fund. This bill would also void contracts between a physician/dental practice and a private equity group/hedge fund that include specified anti-competitive provisions — including non-compete provisions and those that bar providers from making disparaging remarks related to revenue-increasing strategies and quality or utilization of care — in the event of termination or resignation.