The California Medical Association (CMA) announced that Senate Bill 351, sponsored by the CMA and authored by Senator Christopher Cabaldon, has been approved by the Legislature and will be sent 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.
Senate Bill 351 gives the Attorney General authority to act against corporate entities that interfere with medical practice. The legislation is intended to ensure that physicians, rather than financial interests, make patient care decisions. This comes amid national concerns linking private equity ownership in health care to increased costs, decreased quality of care, and limited patient access.
“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. The CMA has a history of supporting California’s corporate bar, which prevents corporations from influencing clinical decisions. SB 351 adds new enforcement measures designed to deter violations of these rules and protect patients.
