The Stop Corporate Takeovers of Physicians Act would ban corporations and private equity from owning physicians. The bill is modeled on the landmark Oregon law that physicians have already used to successfully challenge corporate takeovers.
Text of Bill (PDF) | One-Pager (PDF)
Washington, D.C. – Today, Senators Ron Wyden D-Ore., Jeff Merkley D-Ore., and Elizabeth Warren D-Mass., along with Representatives Val Hoyle D-Ore., Alexandria Ocasio Cortez D-N.Y., and Suhas Subramanyam D-Va. introduced the Stop Corporate Takeovers of Physicians Act to ban the corporate practice of medicine.
Over 80 percent of doctors in the United States are employed by corporate entities—including private equity firms and insurers—up from 62 percent in 2019.
Despite prohibitions on the corporate practice of medicine in over thirty states, private equity firms, insurers, and other corporate entities have exploited legal loopholes that allow them to circumvent these restrictions to the detriment of clinicians and patients.
Management services organizations (MSOs) have become vehicles for exercising corporate control over physicians. MSOs contract with physician practices to handle ostensibly purely administrative tasks, but these actors often challenge the autonomy of acquired physicians once in control. For example, corporate entities often assume control over clinical operations, management and staffing decisions, and billing and coding practices—all of which can exert pressure on physicians to change care delivery.
The Stop Corporate Takeovers of Physicians Act ensures health care decisions are made by physicians—not private equity firms, insurance companies, or other corporate actors. The legislation:
- Bans the corporate practice of medicine by making it illegal for private equity funds, insurance companies, and other for-profit corporations to own or control medical practices;
- Closes the “friendly physician” loophole that has allowed investor-backed corporations to evade state-level bans on the corporate practice of medicine and control medical practices through MSOs;
- Prohibits an MSO from controlling a medical practice through a “friendly” or “captive” physician, or by taking over business, administrative, and clinical functions such as hiring and firing, work schedules, compensation, disbursement of revenue or setting of revenue targets, billing practices, contracting, and other services;
- Ensures that physicians retain ultimate control of medical practices by requiring that physician owners are meaningfully engaged in providing medical care in the state in which their practice is located; and
- Protects physician independence by prohibiting corporate interference with clinical decisions and banning restrictive contract terms, such as non-compete agreements, nondisclosure agreements, and non-disparagement agreements.
“Americans want medical decisions to stay between patients and their doctor, not dictated by corporate actors and private equity firms focused on maximizing profits,” said Senator Wyden. “I’m proud of Oregon’s pioneering state law that has been used by doctors to protect their independence, and it’s time to take that model to the federal level. Corporate medicine is making health care more expensive for everyone, and safeguards must be put in place to ensure health care decisions stay in the hands of physicians.”
“Billionaire corporations are using sick patients to turn healthy profits, and Americans are fed up,” said Senator Merkley. “In Oregon, we passed one of the most comprehensive corporate practice of medicine laws in the country, standing up for patients and health care providers. It’s time we take on corporate greed in health care at the federal level by passing our Stop Corporate Takeovers of Physicians Act, cracking down on these takeovers that are destroying our health care system.”
“Patients want to know that decisions about their health are being made by their doctors, not by Wall Street investors,”said Senator Warren. “If we’re going to lower costs and un-rig the health care system, we need to stop the corporate takeover of medicine.”“80% of doctors in the U.S. are employed by corporate entities, up from 62% in 2019,” said Representative Hoyle. “Healthcare should not be a line item in a spreadsheet. The Stop Corporate Takeovers of Physicians Act will ensure proper protections are in place, so our healthcare systems serve the best interests of our patients, not corporations.”
“Americans want medical decisions to stay between patients and their doctors, not dictated solely by the pursuit of maximizing profits. States have passed laws to protect the independence of physicians, and it’s time to take that model to the federal level. Corporate medicine is making health care more expensive for everyone, and safeguards must be put in place to ensure health care decisions stay in the hands of physicians,” said Representative Subramanyam.
“Across the country, private equity firms and corporate conglomerates are buying up American physician offices. To increase shareholder profits, these entities often cut corners, leading to patients paying more for significantly worse care,” said Representative Ocasio-Cortez. “I’m proud to co-lead the Stop Corporate Takeovers of Physicians Act to get Wall Street out of Americans’ doctors’ offices and ban predatory noncompete agreements for healthcare workers.”
“With big bipartisan majorities, Oregon passed the strongest ban on the corporate practice of medicine in the country,” Oregon House Majority Leader Ben Bowman said, the author and chief sponsor of Oregon Senate Bill 951 (2025). “Oregon has shown that it’s possible to stand up to corporate profiteering in healthcare and win. Now it’s time to take that fight nationwide.”
The bill is modeled on a landmark law in Oregon that physicians have already used to successfully challenge corporate takeovers in the state. Most recently, Eugene Emergency Physicians beat back efforts by Peace Health to replace local physicians with a private equity-backed staffing company.
This legislation is also supported by Representatives Chris Deluzio D-Pa., Maxwell Frost D-Fl., Yassamin Ansari D-Az., Rashida Tlaib D-Mich., Yvette Clarke D-N.Y., and Eleanor Holmes Norton D-D.C., and has been endorsed by the American Academy of Emergency Medicine, American Economic Liberties Project (AELP), Coalition for Patient Centered Care, Bull Moose Project, Center for Health and Democracy, OrthoForum, Alliance of Independent Dentists, Private Equity Stakeholder Project, and Association for Independent Medicine.
“The American Academy of Emergency Medicine (AAEM) believes that local physician ownership of their practice is the best arrangement for the physicians, the medical staff, the hospital and, most importantly, for the patient,” said Vicki Norton, MD, FAAEM, President of the AAEM. “That’s why the AAEM strongly supports The Stop Corporate Takeovers of Physicians Act of 2026. The bill would prohibit the corporate practice of medicine and allow physicians to work unencumbered, focusing on patients. There is no greater policy imperative for AAEM than protecting patient safety and quality of care in emergency departments through efforts such as this bill.”
“The Stop Corporate Takeovers of Physicians Act will strengthen long-standing bans on the corporate practice of medicine, ensuring clinical decisions are made by licensed professionals sworn to care for patients, not corporations beholden to shareholders,” said Emma Freer, Senior Fellow for Health Care at the American Economic Liberties Project. “It’s an essential step toward breaking up Big Medicine, which drives costs up, quality down, and independent practitioners out of business.”
“States established prohibitions against the corporate practice of medicine a century ago for a simple reason: when corporations start making medical decisions instead of doctors, everyone loses. Care gets worse and more expensive for patients, working conditions get worse for doctors and their staff, and communities lose the unique benefits of high-quality, independent care,” said Joe Van Wye, Policy Director at Coalition for Patient-Centered Care. “We commend the sponsors of the Stop Corporate Takeovers of Physicians Act for introducing today’s legislation, which will enshrine our nation’s strongest and most effective protections against the corporate practice of medicine into federal law for the benefit of all Americans, and hope it is enacted quickly.”
“Patients are best served when clinical decisions and practice operations remain under the control of licensed healthcare professionals, not private equity firms or management companies whose primary obligation may be to investors, says Dr. Jill Tanzi, President of the Alliance of Independent Dentists. “The threats posed by corporate consolidation are not unique to medicine; dentists and their patients deserve these same protections. This bill’s protections against corporate control and interference are critical safeguards for both clinicians and patients, and we commend its sponsors for working to protect independent medicine.”
“Private equity firms and other corporate investors should not get to decide how doctors practice medicine. When investors dictate staffing levels or how much time doctors can spend with patients, they are directing patient care. Doctors need the authority to make those decisions based on what their patients need. We support the Stop Corporate Takeovers of Physicians Act and urge Congress to put enforceable limits on corporate control of medical practices,” said Michael Fenne, Senior Policy Coordinator at the Private Equity Stakeholder Project.
“Our health care system is perfectly designed to concentrate wealth and power into corporate entities and increasingly badly designed to actually care for patients. The Oncology Practices of ONCare Alliance are dedicated to helping oncologists remain independent of private equity and other corporate structures that pull needed resources away from patient care into their profit margins,” said Barbara McAneny, Co-Chair of the OnCARE Alliance. “We strongly oppose the corporate practice of medicine and commend the sponsors of the Stop Corporate Takeovers of Physicians Act for introducing this important bill that will help doctors design our practices to make the best treatment plans with our patients.”
The text of the bill is here.
A one-pager for this bill is here.
A web version of this release is here.