Private equity activity in healthcare has increased over the last decade, and some states have passed or have pending legislation that could increase scrutiny over private equity deals in healthcare.
Five states currently have programs that directly or indirectly regulates private equity in healthcare, according to an Oct. 18 blog post by The Commonwealth Fund:
1. California has established an Office of Health Care Affordability, which aims to analyze mergers and acquisitions that "are likely to significantly impact market competition," according to the office's website. Gov. Gavin Newsom recently vetoed a bill that would have further expanded private equity scrutiny in the state.
2. Indiana is considering a bill that requires health care entities to provide notice of certain mergers and acquisitions to the state attorney general.
3. Minnesota is considering a bill that establishes transaction requirements for healthcare mergers and acquisitions that includes data-reporting requirements and other regulatory statutes.
4. New Mexico recently passed the Health Care Consolidation Oversight Act, which requires a review of proposed hospital acquisitions and other healthcare transactions.
5. Oregon established the Health Care Market Oversight program, by which the Oregon Health Authority reviews proposed transactions for possible anti-competitive activity.
According to The Commonwealth Fund, there is "potentially viable" private equity legislation under consideration in Massachusetts, New Jersey, New York and Pennsylvania.