Stop Corporate Takeovers of Physicians Act aims to curb corporate healthcare grip

SALEM, Ore. (KTVZ) -- U.S. Senators Ron Wyden, Jeff Merkley and Elizabeth Warren, alongside U.S. Reps. Val Hoyle, Alexandria Ocasio-Cortez and Suhas Subramanyam, introduced legislation today aimed at banning corporate and private equity ownership of medical practices.

The proposal, titled the Stop Corporate Takeovers of Physicians Act, seeks to eliminate legal loopholes that allow private equity funds, insurance companies and for-profit corporations to control clinical operations and staffing.

The legislative push comes as corporate ownership of medical practices reaches historic highs. Approximately 80% of doctors in the United States are currently employed by corporate entities, up from 62% in 2019.

Modeled on existing Oregon state law, the proposed federal measure would prohibit management services organizations from using captive physician agreements or managing administrative and operational tasks to dictate care delivery.

The legislation specifically targets management services organizations, which lawmakers say have been used by corporate actors to exercise control over physician practices. Under the proposed bill, management services organizations would be barred from controlling clinical operations, hiring and firing decisions, work schedules, compensation, billing practices and revenue targets. The bill also bans restrictive contract provisions, including noncompete and nondisclosure agreements.

The federal bill is modeled on legislation passed in Oregon that physicians have used to challenge corporate acquisitions. Oregon House Majority Leader Ben Bowman, author of Oregon Senate Bill 951, pointed to state-level results as a model for federal action. “With big bipartisan majorities, Oregon passed the strongest ban on the corporate practice of medicine in the country,” Bowman said. “Oregon has shown that it's possible to stand up to corporate profiteering in health care and win. Now it's time to take that fight nationwide.”

Sponsors of the bill argued that corporate influence places profit margins ahead of patient health. U.S. Sen. Wyden, D-Oregon, emphasized keeping health decisions between patients and physicians. “Americans want medical decisions to stay between patients and their doctor, not dictated by corporate actors and private equity firms focused on maximizing profits,” Wyden said. “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.”

Other lawmakers voiced similar concerns about investor oversight in clinical settings. U.S. Sen. Merkley, D-Oregon, said corporate takeovers are damaging the care system. “Billionaire corporations are using sick patients to turn healthy profits and Americans are fed up,” Merkley said. U.S. Sen. Warren, D-Massachusetts, added that stopping corporate expansion is necessary to lower medical expenses. “Patients want to know that decisions about their health are being made by their doctors, not by Wall Street investors,” Warren said.

U.S. Rep. Ocasio-Cortez, D-New York, co-leading the House effort, criticized private equity consolidation of local clinics. “Across the country, private equity firms and corporate conglomerates are buying up American physician offices,” Ocasio-Cortez said. “To increase shareholder profits, these entities often cut corners, leading to patients paying more for significantly worse care.”

The measure has gained backing from several medical associations and advocacy groups, including the American Academy of Emergency Medicine, the American Economic Liberties Project, the Coalition for Patient Centered Care, the Bull Moose Project, the Center for Health and Democracy, OrthoForum, the Alliance of Independent Dentists, the Private Equity Stakeholder Project and the Association for Independent Medicine.

Medical professionals and advocates highlighted the impact of physician ownership on quality of care. Dr. Vicki Norton, president of the American Academy of Emergency Medicine, expressed support for the federal legislation. “The American Academy of Emergency Medicine 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,” Norton said.

Industry analysts also supported tightening existing rules. Emma Freer, senior fellow for health care at the American Economic Liberties Project, described the bill as a key measure to protect independent providers. “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,” Freer said. Joe Van Wye, policy director at the Coalition for Patient-Centered Care, added that corporate decision-making undermines community health care by raising costs and worsening working conditions.