CA SB 184: Implications for healthcare access, pricing, and transactions

On June 30, 2022, California Governor Gavin Newsom signed the 2022–2023 state budget, which included a trailer bill, Senate Bill (SB) 184, with significant, long-term implications for healthcare providers, payers, and consumers.

In the coming years, providers can expect to see mandated reporting requirements and potential enforcement actions related to healthcare in the following sectors:

• Cost
• Quality
• Accessibility
• Equity

Additionally, SB 184 legislates expansions to Medi-Cal services and eligibility, provides for mental health crisis grants, and is anticipated to support significant healthcare payment reform.

For more information on this subject, join us on Nov. 3, 2022, at the Moss adams annual healthcare conference in Las Vegas, at which we'll host a session discussing the impacts of SB 184 in California. We will provide a detailed article and webcast about SB 184 after the conference.

Impact on healthcare transactions

Providers, health plans, investors, as well as market disruptors can expect to see increased scrutiny and reporting related to business transactions. Particularly concerning is the effect California SB 184 will likely have on transactions due to:

• Public disclosure requirements
• Confidentiality concerns
• Unpredictable costs for report preparation
• Increased time to complete transactions

Legislating healthcare affordability

SB 184 provides the funding to establish a healthcare cost commission called the Office of Healthcare Affordability (OHCA) within the Department of Healthcare Access and Information (HCAI).

California will be the fourth state to establish such an office, joining Massachusetts, Oregon, and Rhode Island. The OHCA’s responsibilities will include:

• Setting and enforcing target cost growth benchmarks to control rising healthcare prices