Bill to Ban Private Equity from Owning Medical Practices

A group of Democrats led by Sen. Elizabeth Warren introduced bicameral legislation to prohibit for-profit corporations - specifically private equity firms, insurance companies and management services organizations - from owning or controlling medical practices. Modeled on a new Oregon law that has already blocked a corporate takeover in Eugene, the bill includes mandatory divestment and three enforcement paths: the Federal Trade Commission, state attorneys general and a private right of action for physicians with treble damages. Backers say these provisions give the measure teeth that prior corporate practice restrictions lacked and would help physicians retain control over medical decision-making and practice operations.

The proposal responds to a dramatic rise in corporate ownership and private equity investment in health care - private equity’s stake grew from about $5 billion in 2000 to $104 billion in 2024 - and to data showing more physicians are employed by hospitals or corporate entities (about 82 percent now, up from 62 percent in 2019). Cited research links private equity ownership to higher costs and worse patient outcomes, especially in nursing homes. Rising insurer and employer health-plan costs (employers expect an average 11 percent increase per worker in 2027) amplify the urgency, and supporters argue barring Wall Street investors from practice ownership is essential to rein in costs and protect patient care.