A number of legislative developments and new data points to a shift in private equity activity, especially in the area of physician practice acquisitions.
Here are three recent updates on the changing regulatory and business landscape surrounding private equity in healthcare:
1. The Pennsylvania House of Representatives passed legislation June 12 that would expand the attorney general’s authority to review and potentially block healthcare mergers and acquisitions. The bill also prohibits sale-leaseback arrangements involving private equity firms and requires healthcare organizations to disclose financial and operational details before finalizing major deals.
2. Oregon Gov. Tina Kotek signed a bill June 9 that enacts the strictest regulatory framework in the country on private equity and corporate ownership of medical practices. The law allows a three-year transition period for compliance and mandates that physicians maintain at least a 51% ownership stake in most practices. It also bars corporations and management service organizations from exerting decision-making control over medical groups.
3. Private equity’s share of physician group deals fell to a six-year low, according to VMG Health’s “2025 Healthcare M&A Report,” published April 22. Private equity firms were involved in 280 physician medical group transactions in 2024, representing 59% of healthcare deals that year — the lowest percentage since 2018 and a significant decline from a peak of 80% in 2019.
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