CT/CA/NYC/VT/States Advance PE Curbs; MSO Scrutiny & FMV Risks; FTC Antitrust Action
Key Questions
What new regulations is California implementing for private equity in healthcare?
California's OHCA released proposed emergency regulations under AB 1415 that expand pre-transaction notice requirements to PE firms and MSOs, increasing compliance burdens and extending deal timelines. The state AG also issued CPOM rulings and practice acquisition guides amid over 42 state bills on the topic.
How does Connecticut's new law address private equity in hospitals?
Connecticut's 2026 CON/SB 196 law, signed by Governor Lamont, targets PE sale-leaseback tactics following the Prospect debacle by requiring hospitals to attest no PE controlling interest and limiting PE influence on clinical decisions.
What antitrust actions has the FTC taken in recent healthcare deals?
The FTC required Ascension to divest 7 ASCs in its $3.9B AmSurg deal, including a compliance monitor as a concrete remedy. This reflects rising state and federal antitrust enforcement in healthcare transactions.
Which states are advancing new CPOM or PE oversight bills?
New CPOM bills are advancing in Washington, Rhode Island, Vermont, and Illinois, while Delaware SB1 advances transparency measures. Oregon's existing oversight has been deemed ineffective in recent reviews.
What does the literature review say about private equity's impact on healthcare?
A review of 46 studies found that PE involvement in healthcare leads to price increases and mixed-to-harmful quality outcomes, heightening regulatory and reputational risks for investors and operators.
What workforce policy changes are proposed in New York?
New York's FY27 budget includes $1.5B in healthcare investments, CON streamlining, an AI consortium, and temporary staffing crackdowns, while a separate proposal aims to modernize physician assistant scope of practice.
How are states responding to nursing home and hospital crises involving PE?
Multiple states, including Connecticut after the Prospect issues, are enacting laws to curb PE influence in hospitals and nursing homes through ownership attestations, clinical decision limits, and expanded transaction reviews.
What is the American College of Physicians' position on PE disclosure?
The ACP position paper advocates for mandatory disclosure of private equity ownership and influence in healthcare to address transparency gaps amid rising state-level scrutiny.
California's OHCA released proposed emergency regulations implementing AB 1415, expanding pre-transaction notice requirements to PE firms and MSOs—adding compliance burden and longer deal timelines. CT 2026 CON/SB 196 signed into law by Lamont, directly targeting PE sale-leaseback tactics after Prospect debacle—requires hospitals to attest no PE controlling interest and limits PE influence on clinical decisions. CA AG Bonta CPOM ruling and practice acquisition guides; 42+ state bills. Oregon oversight ineffective; Delaware SB1 advances transparency. New CPOM bills in WA, RI, VT, IL. State antitrust enforcement rising. ACP position paper calls for mandatory disclosure. FTC forced Ascension to divest 7 ASCs in $3.9B AmSurg deal—concrete antitrust remedy with compliance monitor. NY PA scope-of-practice proposal adds workforce policy angle. California's expanded pre-transaction oversight moving to implementation. NY FY27 budget includes $1.5B healthcare investment, CON streamlining, AI consortium, temporary staffing crackdown. A comprehensive lit review of 46 studies confirms PE in healthcare leads to price increases and mixed quality outcomes, mostly harmful—reinforcing regulatory and reputational risks.