Warren and Ocasio-Cortez Want to Ban Private Equity From Owning Doctors’ Practices (CORRECTED)

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Editor’s Note: This article has been corrected to clarify the source of a description of ApolloMD’s ownership and to include the company’s response.

Sen. Elizabeth Warren (D-Mass.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) are among lawmakers pushing to ban private equity firms, insurers, and other for-profit corporations from owning or controlling physician practices.

The lawmakers on Wednesday introduced the Stop Corporate Takeovers of Physicians Act, legislation that would establish a federal ban on the corporate practice of medicine and seek to close legal structures that allow investor-backed companies to exert control over medical practices.

The bill comes as healthcare consolidation has accelerated across the U.S. More than 82% of physicians were employed by hospitals or corporate entities as of January 2026, according to research from the Physicians Advocacy Institute and Avalere Health. Corporate entities include private equity firms, health insurers and other non-physician owners.

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The same research found that hospitals and corporate entities owned 63.9% of physician practices nationally as of January 2026, with corporate ownership accounting for 33.2%. The report also found that corporate entities acquired more than 52,000 physician practices between 2018 and 2026.

Private Equity Faces New Healthcare Limits

The legislation targets one of the structures commonly used by corporate investors to navigate state restrictions on corporate ownership: management services organizations (MSOs).

MSOs typically provide administrative services to physician practices, but lawmakers say some investor-backed arrangements have allowed MSOs to gain influence over decisions involving staffing, compensation, scheduling, billing and other functions that can affect how doctors operate.

The bill would prohibit an MSO from controlling a medical practice through so-called “friendly” or “captive” physician arrangements. It would also require physician owners to be meaningfully engaged in providing medical care in the state where their practice operates.

The legislation would further prohibit corporate interference with clinical decisions and restrict certain contract provisions, including non-compete, nondisclosure and non-disparagement agreements.

“Patients want to know that decisions about their health are being made by their doctors, not by Wall Street investors,” Warren said in announcing the legislation.

Oregon Law Inspires Federal Push

The bill is modeled on Oregon legislation enacted in 2025 that lawmakers say provides some of the strongest restrictions on corporate practice of medicine in the country.

Oregon’s law has already become a focal point in disputes involving corporate healthcare operators.

In May, Eugene emergency physicians successfully challenged an effort by PeaceHealth to replace local physicians with a staffing company the bill’s sponsors described as private equity-backed. PeaceHealth had selected ApolloMD for the contract; in a March letter to Oregon lawmakers, ApolloMD said it is privately held, clinician-owned and has never been under private equity ownership or control.

The federal proposal would also create enforcement mechanisms. According to the Association for Independent Medicine, which supports the bill, enforcement would involve the Federal Trade Commission, state attorneys general and physicians themselves through a private right of action that could allow for treble damages. The legislation would also require divestment in certain circumstances.

Supporters include the American Academy of Emergency Medicine, Private Equity Stakeholder Project, American Economic Liberties Project, Families USA and several physician organizations.

The push comes as physician consolidation has continued to reshape the U.S. healthcare market. PAI research found that 152,200 fewer physicians were operating independently in January 2026 than in 2018, while 253,000 additional physicians had become employees of hospitals or corporate entities during the same period. (Physicians Advocacy Institute)

The bill now faces the legislative process in Congress, where lawmakers will debate the scope of federal restrictions on corporate ownership and control of medical practices.

Photo: Shutterstock

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