The California Medical Association (CMA) announced that Senate Bill 351, a CMA-sponsored bill authored by Senator Christopher Cabaldon, has passed out of the Legislature and is headed to the Governor’s desk. The bill strengthens California’s longstanding ban on the corporate practice of medicine (corporate bar) and takes an important step toward addressing the growing influence of private equity and hedge funds in health care delivery.

SB 351 empowers the Attorney General to take action against corporate entities interfering in the practice of medicine, ensuring that patient care decisions remain in the hands of physicians – not financial interests. The measure responds to widespread concerns about the impact of private equity ownership in health care, which has been linked nationally to higher costs, lower quality of care, and reduced access for patients.

“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.”

SB 351 passed unanimously in the Assembly with 80 yes votes and received 32 yes votes in the Senate. CMA has long fought to protect California’s corporate bar, which prohibits corporations from influencing clinical decision-making. SB 351 builds on that framework by adding enforcement tools to deter violations of the corporate bar and protect patients.