The California state legislature is considering a bill that would impose new restrictions on healthcare-related merger and acquisition activity, JD Supra reports.
What you should know:
1. The bill would require deals to get approval from the California attorney general before they can close.
2. The bill, if passed, would go into effect for deals made after Jan. 1, 2021, and would establish a set of antitrust laws to prevent healthcare systems from engaging in unilateral conduct. The bill would also impose a new set of standards on all transactions over $500,000.
3. The bill would affect all facets of healthcare including ASCs, and would place a significant burden on future transactions. According to JD Supra, "The bill appears to place a great deal of discretion in the hands of the California Attorney General and imposes additional burdens on health care systems, private equity groups and hedge funds to effectuate future transactions."
4. JD Supra suggested that health systems considering a deal adjust their timeline in light of the proposed legislative action.
Read the entire breakdown here.