A proposed California bill that would require the attorney general to sign off on any healthcare provider transaction exceeding $1 million would likely stifle mergers and acquisitions, regulatory experts said.
The legislation would give California Attorney General Xavier Becerra—who would have 60 days to review a deal involving providers, private-equity firms and/or hedge funds—an "unprecedented expansion of authority," experts said, noting that the $1 million threshold would encompass most healthcare transactions.
While providers argue that hospitals and physician groups will close if they have to clear the bill's "overreaching" standards, others claim that if implemented well, the bill could provide necessary oversight that could help maintain competition and keep prices in check.
The article was originally published by Modern Healthcare. To read the full article, visit modernhealthcare.com (Subscription required).