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S5419119th CongressWALLET

Stop Corporate Takeovers of Physicians Act of 2026

Sponsored By: Senator Warren, Elizabeth [D-MA]

Introduced

Summary

Preserving physician ownership and clinical independence. This bill would bar non-licensee-controlled corporations from owning or controlling medical practices and would limit management and contract terms that let business entities dictate care.

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  • Physicians and other licensees would have to hold majority ownership and control to run a practice, be licensed and present in the state, and be substantially engaged in delivering care. The bill also bans non-compete and non-disclosure or non-disparagement clauses, with a single exception for an employment non-compete where the licensee owns at least 25 percent.
  • Management services organizations would be tightly limited. The bill defines MSOs and forbids MSO actions that amount to practicing medicine or that give de facto control over hiring, scheduling, revenue rules, coding, billing, contracting, or clinical policies. Any contract that allows those controls would be void.
  • Enforcement would be handled by the Federal Trade Commission as unfair or deceptive acts, with a private right of action that can include treble damages, attorneys’ fees, and injunctive relief. The bill preserves stricter state rules and exempts certain nonprofit and hospital entities. Its requirements would take effect one year after enactment.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Ban non-clinician owners of practices

If enacted, partnerships or corporations that are not majority-owned and run by licensed clinicians would not be allowed to own or control a medical practice. "Majority-owned and controlled by licensees" means clinicians hold more than half of ownership interests and a majority of the governing body. Management services organizations could not exercise de-facto control, own practice shares, finance acquisitions, or block sales; practice MSO contracts must be arm's-length and pay fair market value as the Commission decides. Certain hospitals and nonprofit or public health providers would be exempt. These rules would start one year after enactment.

Protect clinicians' medical judgement

If enacted, health care owners, managers, or contractors would be banned from interfering with a clinician's professional judgment by threats, discipline, retaliation, coercion, or excessive pressure. The bill lists specific prohibitions, such as limiting time with patients, controlling admissions or referrals, ordering diagnoses or record entries, or timing of treatments. The Federal Trade Commission, with HHS consultation, could add other prohibited interferences. These protections would start one year after enactment.

Ban clinician non-competes and gag rules

If enacted, most non-compete and non-disclosure or non-disparagement agreements for clinicians and health providers would be void and unenforceable. The only non-compete that could be enforced is one between a licensee and a practice when the licensee owns 25 percent or more of the practice. Other legal claims like libel or tortious interference would still be available if they do not depend on the banned contract clause. These rules would start one year after enactment.

New enforcement and federal penalties

If enacted, violations would be treated as unfair or deceptive acts under the FTC Act and the FTC could enforce the rules and make regulations. Any person injured by a violation could sue and recover treble damages and attorney fees. State attorneys general could bring parens patriae suits for residents. The bill would also add MSO-related violations to Social Security Act section 1128(b), creating a basis for exclusion from Medicare and Medicaid. Some enforcement rules would start one year after enactment; the SSA amendment does not specify an effective date.

States can keep stricter rules

If enacted, the bill would not override any State law that is equal or more strict about ownership, licensee protections, or management services organizations. States with stronger protections would keep them. This preserves existing state rules rather than replacing them.

Sponsors & CoSponsors

Sponsor

Warren, Elizabeth [D-MA]

MA • D

Cosponsors

  • Sen. Wyden, Ron [D-OR]

    OR • D

    Sponsored 9/16/2026

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 9/16/2026

Roll Call Votes

No roll call votes available for this bill.

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