- Posts by Raja Sékaran
Member of the FirmWith more than 30 years of experience at the intersection of business law, health care regulation, and government enforcement, attorney Raja Sékaran provides practical, business-minded solutions that help health care ...
On September 11, 2026, California’s Office of Health Care Affordability (OHCA) Department of Health Care Access and Information (HCAI) released advance notification of proposed emergency regulatory action (the “Proposed Emergency Regulations”) regarding material change health care transactions. The Proposed Emergency Regulations—subsequently submitted to the state’s Office of Administrative Law (OAL)—further implement California’s AB 1415[1] respecting state oversight of private equity (PE) groups, hedge funds, and management services organizations (MSOs) operating in the health care space. As EBG wrote at the time of signing in 2025, AB 1415, which took effect January 1, 2026, represented a significant change for PE groups, hedge funds, and MSOs in the state by expanding OHCA’s notice requirements.
[1] Cal. Stats. 2025, ch. 641
On April 3, 2026, the director of the Office of Management and Budget submitted to Congress President Donald Trump’s budget for 2027—proposing $111.1 billion in discretionary budget authority for the U.S. Department of Health and Human Services (HHS) for Fiscal Year 2027, beginning October 1, 2026, and ending September 30, 2027. The number represents a $15.8 billion or 12.5 percent decrease from the 2026 enacted level and suggests ongoing emphasis on combatting improper payments and practices in health care. The proposed budget investments also signal potential shifts that will impact service delivery for certain communities and business operations for entities that contract with the federal government or federal government grantees. We’ve noted the following key takeaways from the HHS Budget in Brief on these points, below.
On March 23, 2026, the U.S. House of Representatives’ Committee on Oversight and Government Reform sent a letter to California Governor Gavin Newsom requesting “documents and communications” surrounding the state’s oversight of its federally funded hospice programs.
The U.S. Court of Appeals for the Ninth Circuit has held that a laboratory owner’s payments to marketing intermediaries violated the Eliminating Kickbacks in Recovery Act (EKRA)—in its first interpretation of the statute since it was enacted in 2018.
In United States v. Schena, No. 23-2989, F.4th (9th Cir. July 11, 2025), the Ninth Circuit affirmed the convictions of Mark Schena—who in 2022 was found guilty by a federal district court jury of nine counts of health care and securities fraud. These included two counts of EKRA violations, based on illegal kickbacks to an intermediary who misrepresented the lab’s services. Schena was sentenced to 96 months in prison and ordered to pay more than $24 million in restitution. (The intermediary plead guilty to conspiracy to commit health care fraud and was sentenced to a shorter term, as was another co-defendant represented by Epstein Becker & Green attorneys.)
Recent Updates
- Comment Period Closes on California OHCA’s Proposed Emergency Regulations Expanding Private Equity, Hedge Fund, and MSO Reporting in Health Care Transactions
- DOJ Revises Justice Manual on Non-Binding Guidance and Qui Tam Dismissals: Practical Considerations
- Additional SBA Crackdown on Pandemic-Era Fraud Leads to Program and Loan Suspensions, Possible FCA Enforcement
- Federal Regulatory Views on Cybersecurity and AI Amidst a Growing Threat Landscape
- Remote Monitoring Services Under the 2027 PFS Proposed Rule: Epstein Becker Green Submits Comments to CMS