New California Laws Reshape Healthcare Transactions and Investor Influence

In October 2025, Governor Gavin Newsom signed two sweeping laws that significantly reshape how healthcare transactions are reported and how private equity groups and hedge funds may engage with physician and dental practices. Assembly Bill 1415 (AB 1415) establishes new reporting obligations for healthcare transactions involving material changes in ownership or control, while Senate Bill 351 (SB 351) codifies California’s Corporate Practice of Medicine (CPOM) doctrine by restricting how private equity groups and hedge funds may influence or control clinical practices. Both laws take effect on