How Stalled Private Equity Oversight Bills May Sway M&A

Healthcare attorney John Saran was interviewed by Modern Healthcare about how stalled state legislation increasing oversight of private equity transactions in the healthcare industry could affect future deals. California Gov. Gavin Newsom's veto of a bill that would have required attorney general review of certain transactions garnered national attention, but Assembly Bill (AB) 3129 marks just one example of proposed laws targeting private equity-linked healthcare deals that failed to pass. A number of states, including California, already have merger notification laws on the books, but more comprehensive regulatory efforts have stalled in at least six other states, from Connecticut to Oregon. Mr. Saran noted that in California specifically, healthcare investors and lenders had paused activity while awaiting the fate of AB 3129, so he expects an uptick in dealmaking.

"The potential for scrutiny might persist, but I do think that the outlook for deals being done in 2025 saw an improvement from three weeks ago," he said.

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