October 18, 2023
Governor Gavin Newsom vetoed AB 616 (Rodriguez), dubbed the Medical Group Financial Transparency Act. CMA opposed AB 616 in the Legislature and led a coalition that advocated against it, as it would ultimately lead to higher costs and negative patient outcomes.
If AB 616 had passed, it would have required medical groups to release their audited financial reports and statements to the public on the California Department of Health Care Access Information website. Making such sensitive financial data public would escalate consolidation in the health care industry by allowing private equity and corporate interests to use the data to make acquisitions. The bill also would have reversed a previous agreement made last year during the establishment of California’s Office of Health Care Affordability.
The governor’s veto message noted that the Office of Health Care Affordability should be fully implemented before considering additional requirements and their associated impacts.
CMA will continue to educate policymakers about the risks associated with public disclosure of this information.