The California Medical Association (CMA) announced that Senate Bill 351, which the association sponsored and Senator Christopher Cabaldon authored, has passed both chambers of the state Legislature and is now awaiting the Governor’s consideration. The legislation aims to strengthen California’s existing ban on the corporate practice of medicine and addresses concerns over private equity and hedge fund involvement in health care delivery.
The bill gives new authority to the Attorney General to act against corporations that interfere with medical practice, with a goal of ensuring that physicians maintain control over patient care decisions. This legislative effort comes amid growing national concern about how private equity ownership can impact health care costs, quality, and patient access.
“SB 351 is about protecting the integrity of the physician-patient relationship and making sure that health care decisions are guided by what is best for patients, not what maximizes profits,” said CMA President Shannon Udovic-Constant, M.D. “We are grateful to Senator Cabaldon for his leadership on this critical issue and applaud the Legislature for recognizing the urgent need to safeguard medical decision-making from corporate interference.”
The bill received unanimous support in both chambers: 80 votes in favor in the Assembly and 32 in favor in the Senate. The CMA has been an advocate for maintaining California’s prohibition on corporate influence over clinical decision-making. SB 351 builds upon this framework by providing new enforcement mechanisms intended to deter violations of these rules and protect patients.
