Key facts
- California Governor Gavin Newsom signed a bill to prevent private equity firms from profiting off medical debt.
- The legislation aims to keep Wall Street firms out of the medical lien process.
- Uber agreed to implement enhanced driver background checks and other safety standards.
- The bill was passed by the state Assembly and Senate to meet a ballot initiative deadline.
California Governor Gavin Newsom has signed a bill that will prevent private equity firms from profiting from medical debt, particularly in cases involving car crash victims. The legislation, co-authored by Assemblymember Diane Papan (D-San Mateo) and State Senator Tom Umberg (D-Santa Ana), aims to keep Wall Street entities out of the medical lien process.
In exchange for this measure, Uber has agreed to implement enhanced driver background checks and other safety standards. Trial attorneys, who supported these proposals, believe these measures will help prevent sexual assault and other forms of misconduct. The agreement between Uber and the attorneys could serve as a model for resolving similar disputes over car crash liability in other states.