The California Medical Association (CMA) announced that Senate Bill 351, which it sponsored and was authored by Senator Christopher Cabaldon, has passed the Legislature and will move to the Governor for consideration. The bill is designed to reinforce California’s ban on the corporate practice of medicine and address concerns about private equity and hedge fund involvement in health care.
SB 351 gives the Attorney General authority to act against corporate entities that interfere with medical practice. The legislation aims to ensure that physicians, rather than financial interests, make patient care decisions. This move comes amid national reports linking private equity ownership in health care to increased costs, lower quality of care, and reduced 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 received unanimous support in the Assembly with 80 votes in favor and passed the Senate with 32 yes votes. CMA has advocated for maintaining California’s prohibition on corporations influencing clinical decisions. SB 351 expands on this by providing additional enforcement measures intended to deter violations of these rules and protect patients.
