A group of Democratic House and Senate lawmakers introduced legislation that would prohibit private equity funds, insurance companies and other for-profit corporations from owning or controlling medical practices.
The Stop Corporate Takeovers of Physicians Act would target corporate ownership structures that lawmakers say can interfere with physicians’ autonomy and clinical decision-making. The bill’s sponsors pointed to management services organizations and private equity buyers as part of the issue, citing an increase in the number of physicians employed by corporate entities, according to a Sept. 16 news release.
Five provisions of the Stop Corporate Takeovers of Physicians Act:
- Ban the corporate practice of medicine by prohibiting private equity funds, insurance companies and other for-profit corporations from owning or controlling medical practices.
- Close the “friendly physician” loophole that has allowed investor-backed corporations to circumvent state-level bans and control medical practices through management services organizations.
- Prohibit management services organizations from controlling medical practices through “friendly” or “captive” physicians or by controlling functions such as hiring and firing, work schedules, compensation, revenue targets, billing practices and contracting.
- Require physician owners to be meaningfully engaged in providing medical care in the state where their practice is located.
- Prohibit corporate interference with clinical decisions and restrictive contract terms, including noncompete agreements, nondisclosure agreements and nondisparagement agreements.
The legislation is modeled on an Oregon law addressing the corporate practice of medicine that physicians have used to challenge corporate takeovers in the state.
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