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California lawmakers are poised to vote for the first time on regulating private equity investments in health care , but the proposal they will weigh in on carves out exemptions for some of the industry’s biggest players.
Heavy lobbying from deep-pocketed health care and investor groups forced Assemblymember Jim Wood to agree to exclude for-profit hospitals — about 20% of hospitals — from oversight.
Supporters of the hotly contested measure warn that private equity takeovers are already driving increased consolidation, higher prices and less access. Opponents contend that the measure will stifle much-needed investment in health care, leading to service cuts and hospital closures.
Wood, a Democrat from Healdsburg, said during a previous committee hearing that no one is more disappointed than he is to have to make concessions, but the bill still has merit.