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22 01, 2024

Governor Newsom’s Healthcare Budget Proposal for 2024-25

On January 10, 2024, Governor Gavin Newsom released his proposed California state budget for 2024-2025. In a year where the state was expected to struggle financially, the Legislative Analyst’s Office had originally predicted that the budget deficit could extend upwards of $68 billion due to 2023’s seven month tax filing extension, steep stock market declines, and economic dampening from the Federal Reserve’s interest rate hikes. However, to the surprise of many, the released budget projected a significantly smaller budgetary shortfall at $38 billon. The Governor announced plans to close this gap by dipping into [...]

Governor Newsom’s Healthcare Budget Proposal for 2024-25
19 12, 2023

Emanate Health et al v. Optum Health et al

On November 20, 2023, Emanate Health filed an antitrust suit against Optum Health with the US District Court for the Central District of California. Specific causes of action include attempted monopolization, unfair business practices, unlawful business practices, and intentional interference with prospective economic advantage. Optum is a subsidiary of UnitedHealth, and is the largest employer of physicians in the United States, with nearly 90,000 employed or affiliated physicians after adding nearly 20,000 physicians in 2023. Emanate Health is a nonprofit group of hospitals and physicians providing care in the San Gabriel Valley in California. [...]

Emanate Health et al v. Optum Health et al
15 12, 2023

Cal. Health & Safety Code §§ 127501 through 127501.12: California Health Care Quality and Affordability Act – Office of Health Care Affordability

Establishing within the Department of Health Care Access and Information, the Office of Health Care Affordability. The office shall be responsible for analyzing the health care market for cost trends and drivers of spending, developing data-informed policies for lowering health care costs for consumers and purchasers, creating a state strategy for controlling the cost of health care and ensuring affordability for consumers and purchasers, and enforcing cost targets.

Cal. Health & Safety Code §§ 127501 through 127501.12: California Health Care Quality and Affordability Act – Office of Health Care Affordability
15 12, 2023

United Health Subsidiary Optum Sued for Anticompetitive Practices in Federal Lawsuit

Research indicates that concentrating control of healthcare providers and facilities into a handful of massive health systems leads to higher healthcare costs, without improving quality of care.  There are often limited possibilities available for smaller marketplace participants who are attempting to compete with the giants in the field, especially when the giants engage in unfair business practices. On November 20, 2023, Emanate Health filed an antitrust with the US District Court for the Central District of California.  The complaint alleges that Optum engaged in unfair and unlawful business practices and anticompetitive practices to monopolize [...]

United Health Subsidiary Optum Sued for Anticompetitive Practices in Federal Lawsuit
14 12, 2023

Recapping the 2023 California Legislative Session (Part 2): Healthcare Services and Pharmaceutical Costs

In the last issue of California Legislative Beat, we examined some significant bills from year one of California’s 2023-2024 legislative term. Specifically, we focused on legislation that sought to make changes in healthcare competition, consolidation, and system reform. In part 2 of the 2023 session recap, we turn our attention to bills that aimed to tackle healthcare service and pharmaceutical costs, coverage, and price transparency.   Healthcare Costs and Coverage Californians can expect to be protected from surprising dental or emergency ground medical transportation bills soon. The legislature approved and signed two bills into [...]

Recapping the 2023 California Legislative Session (Part 2): Healthcare Services and Pharmaceutical Costs
7 12, 2023

FTC and California AG Jointly Challenge John Muir’s Acquisition of San Ramon Regional Medical from Tenet Healthcare

See case page: FTC and California v. John Muir Health and Tenet Healthcare Update: On December 15, 2023, John Muir announced it would terminate its proposed deal to acquire Tenet’s remaining interest in San Ramon Medical Center. On December 18th, the FTC and California moved to dismiss their federal court case and the FTC dismissed its administrative challenge.   Federal antitrust enforcement continues to pick up pace even as we near the year end. On November 17, the Federal Trade Commission sued to block John Muir Health's proposed $142.5 million acquisition of San Ramon [...]

FTC and California AG Jointly Challenge John Muir’s Acquisition of San Ramon Regional Medical from Tenet Healthcare
7 12, 2023

FTC and California v. John Muir Health and Tenet Healthcare

In November 2023, the FTC and the California AG challenged John Muir Health's proposed acquisition of San Ramon Regional Medical Center from Tenet Healthcare. Both John Muir and San Ramon Medical operate in the San Francisco Bay Area. John Muir Health is a nonprofit system that already operates two hospitals and also holds a 49 percent non-operating ownership of San Ramon Medical. The proposed transaction would give John Muir the remaining 51 percent interest in San Ramon Medical, currently owned and operated by Tenet Healthcare, a for-profit health system based in Texas. The FTC [...]

FTC and California v. John Muir Health and Tenet Healthcare
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