Two bills sponsored by the California Medical Association (CMA) that would safeguard patients and preserve physician-led care are making progress in the California Legislature, recently clearing committee hearings in their second house.

Senate Bill 351 by Senator Christopher Cabaldon would bolster California’s ban on the corporate practice of medicine by granting the Attorney General an enforcement tool to investigate and bring action against private equity groups that unlawfully influence the practice of medicine.

SB 351 advanced out of the Assembly Business & Professions Committee on June 24 and received unanimous support at the Assembly Judiciary Committee’s July 1 hearing. At the June 24 hearing, Steven Abelowitz, M.D. – a pediatrician who left his previous practice after a private equity acquisition – described how profit-driven management undermined patient care and pushed him to establish a new practice where he could provide quality care without interference.

“While some families have found me in my new practice, others suffered from substandard care under private equity influence. One concerning case involved an 8-year-old who recevied inappropriate vaccines meant for teenagers. This mistake was hidden from the parents, only coming to light when I resumed their child's care,” Abelowitz said. “This situation underscores the need for physicians to oversee medical decisions and why it's critical to ensure that physicians, and physicians alone, oversee medical care and clinical decisions. Absent true enforcement, the interest to increase profits and lower operating costs will come at the cost of patient safety and quality of care.”

SB 351 heads next to the Assembly Appropriations Committee.

Assembly Bill 489 by Assemblymember Mia Bonta protects Californians against artificial intelligence (AI) systems falsely claiming to be licensed medical professional by allowing regulators to enforce title protections against companies deploying or developing such systems.

AB 489 advanced out of the Senate Business, Professions and Economic Development committee on June 23. The bill is scheduled to be heard next in the Senate Judiciary Committee on July 15.

SB 351 and AB 489 are both part of CMA’s sponsored bill package for the 2025 legislative session.