California Health Care Quality and Affordability Act.

Assembly Member Bonta's legislation expands oversight of California's health care market by broadening the scope of entities subject to cost and quality monitoring under the Office of Health Care Affordability. The bill updates definitions of health care providers to include health systems and management services organizations while establishing new reporting requirements for private equity groups, hedge funds, and other entities that influence health care costs.

The legislation requires management services organizations, which provide administrative support to health care providers, to submit operational data to the Office of Health Care Affordability. It also mandates that private equity groups, hedge funds, and newly created business entities notify the office before completing transactions that would materially change ownership or control of health care entities.

The bill refines the office's authority to analyze market trends, including the impact of consolidation, venture capital activity, and profit margins on health care competition and pricing. While certain transactions already reviewed by other regulatory bodies remain exempt from these requirements, the office may receive referrals to conduct cost and market impact reviews of exempt transactions.

Through expanded definitions and enhanced reporting mandates, the legislation aims to provide regulators with more comprehensive data about entities affecting California's health care marketplace. The office will use this information to track spending patterns, set cost targets, and monitor impacts on workforce stability across the health care system.