A new California law restricts the influence of corporations in health care practices. California ACEP strongly supported the bill, Senate Bill 351, in alignment with ACEP’s policy on corporate practice of medicine.
SB 351 is effective in January 2026 and prohibits private equity groups and hedge funds from interfering with the professional judgment of physicians, or from determining coding and billing for patient care. The bill would prohibit and render void contracts between a physician and a private equity group or hedge fund that include any clause barring any provider in that practice from commenting on that practice in any manner as to any issues involving quality of care, utilization of care, ethical or professional challenges in the practice of medicine, or revenue-increasing strategies employed by the private equity group or hedge fund.
“SB 351 safeguards the long-standing principle that clinical decision-making and treatment decisions remain exclusively in the hands of licensed healthcare providers,” said Elena Lopez-Gusman, executive director of California ACEP, in a letter of support for the legislation.
California ACEP supported this effort through a multi-year campaign. The chapter is working hard to make sure that the surge in private equity ownership of health practices does not negatively impact patient care or physician careers.
The law is the latest in a string of recent ACEP victories against corporate interference in medical decision-making, including the passage of similar legislation in Oregon and ongoing efforts to eliminate physician non-compete clauses.
ACEP and its chapters proudly fight to protect the physician-patient relationship and ensure emergency physicians are the ones making clinical decisions in emergency departments based on their training, experience, and the unique needs of their patients.
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