10/02/2026
Fingers crossed…..
A new federal bill is taking aim at the growing role of corporations and private equity firms in American medical practices.
On September 16, 2026, U.S. lawmakers introduced the Stop Corporate Takeovers of Physicians Act, legislation that would restrict for-profit corporations, private equity funds, and insurance companies from owning or controlling physician practices.
The proposal comes amid a major shift in how U.S. medicine is organized. According to figures cited by the bill’s sponsors, more than 80% of U.S. physicians are now employed by corporate entities, compared with 62% in 2019. The lawmakers argue that increasing corporate control can interfere with physician independence, particularly when companies influence staffing, billing, compensation, scheduling, or revenue targets.
One major focus of the bill is the so-called “friendly physician” model. In some arrangements, a licensed doctor technically owns the practice while a Management Services Organization, or MSO, maintains substantial influence over its business operations. The proposed law would restrict MSOs from using such arrangements to exercise control over areas including hiring and firing, compensation, billing, contracts, work schedules and revenue targets.
The legislation would also require physician owners to be meaningfully involved in providing medical care and would prohibit corporate interference with clinical decisions. It additionally targets restrictive employment provisions, including certain non-compete, nondisclosure and non-disparagement agreements.
The measure is modeled partly on legislation adopted in Oregon. For now, however, this is only a proposed federal law: it was introduced as S.5419 and referred to the Senate Committee on Commerce, Science, and Transportation. It would need to pass Congress and be signed into law before taking effect.
Supporters say the legislation would protect physicians' independence and keep medical decisions between doctors and patients. The broader debate centers on whether corporate investment brings useful capital and administrative efficiencies to healthcare, or whether financial incentives can undermine clinical autonomy.
Source: Office of U.S. Senator Elizabeth Warren — Warren, Hoyle, Wyden, Merkley, Ocasio-Cortez, Subramanyam Introduce Bill to Ban the Corporate Practice of Medicine, September 16, 2026.
