The U.S. Senate Committee on Finance published details of legislation introduced by a group of senators and representatives that would prohibit private equity funds, insurers and other for-profit corporations from owning or controlling medical practices. The Stop Corporate Takeovers of Physicians Act would establish federal restrictions modeled on Oregon law and seek to ensure that physicians retain control over clinical and operational decisions. The bill would close the “friendly physician” loophole used by corporate entities to control practices through management services organizations. It would bar such organizations from directing staffing, compensation, work schedules, revenue targets, billing and contracting, while requiring physician owners to be meaningfully engaged in providing care in the state where the practice operates. The measure would also prohibit corporate interference in clinical decisions and ban restrictive terms including noncompete, nondisclosure and nondisparagement agreements. The proposal comes as more than 80% of U.S. doctors are employed by corporate entities, up from 62% in 2019.
2026-09-16U.S. Senate Committee on Finance
U.S. Senate Committee on Finance details proposed federal ban on corporate ownership and control of medical practices
The U.S. Senate Committee on Finance detailed a proposed federal ban on private equity firms, insurers and other for-profit corporations owning or controlling medical practices. The bill would restrict corporate control through management services organizations, preserve physician authority over practice and clinical decisions, and ban specified restrictive employment terms.