The California Medical Association (CMA) has announced that Senate Bill 351, which it sponsored and was 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.
If enacted, SB 351 would give the Attorney General new authority to act against corporate entities that interfere with medical practice. This move is intended to keep patient care decisions under the control of physicians rather than financial stakeholders. The bill comes amid national reports that private equity ownership in health care can result in increased costs, diminished quality of care, and less access for patients.
“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 restricts corporations from influencing clinical choices. SB 351 seeks to expand on this by introducing enforcement measures designed to deter violations and protect patients.
