The California Medical Association (CMA) announced that Senate Bill 351, authored by Senator Christopher Cabaldon and sponsored by CMA, has passed both chambers of the Legislature and now heads to Governor Gavin Newsom’s desk.
The bill reinforces California’s longstanding ban on the corporate practice of medicine, addressing growing concerns about the influence of private equity and hedge funds in healthcare delivery.
Key provisions of SB 351:
Empowers the Attorney General to take action against corporate entities interfering in medical decision-making.
Strengthens enforcement of California’s corporate bar, which prohibits non-physicians from directing clinical care.
Ensures that patient care decisions remain with physicians, not financial interests.
Private equity ownership of health care entities has been linked nationwide to higher costs, lower quality, and reduced patient access. CMA leaders say the bill is a necessary safeguard for the physician–patient relationship.
“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
The measure passed with unanimous support in the Assembly (80-0) and with 32 votes in the Senate, reflecting strong bipartisan recognition of the need to protect Californians from corporate interference in healthcare.