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Bill to Ban Private Equity from Owning Medical Practices
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- DeepHorus
Democratic lawmakers introduced bicameral legislation Wednesday to ban private equity firms from owning medical practices. The bill, led by Sen. Elizabeth Warren with 12 cosponsors, mirrors an Oregon law in effect this year. That law already helped Eugene physicians block a corporate takeover.
The measure would bar for-profit corporations, including private equity funds and insurance companies, from owning practices. It would also stop management services organizations from controlling medical offices. Supporters say this could slow rising healthcare costs.
KFF found medical care costs rose 121 percent from 2000 to 2004, versus 86 percent for the broader consumer price index. Private equity investment in healthcare jumped from $5 billion in 2000 to $104 billion in 2024. Research links such ownership to worse outcomes and higher costs, especially in nursing homes.
Costs are expected to keep climbing. Employers anticipate health plan costs will rise 11 percent per worker in 2027 unless benefits are cut. Workers could face higher premiums, and Affordable Care Act plan costs are also projected to increase after Republican cuts in the One Big Beautiful Bill.
“Patients want decisions about their health made by their doctors, not Wall Street investors,” Warren said. “If we’re going to lower costs and un-rig the health care system, we need to stop the corporate takeover of medicine.” Health and advocacy groups have backed the bill.
Marco Fernandez, president of the Association for Independent Medicine, praised the bill’s enforcement teeth. It offers FTC action, state attorneys general suing for residents, and a private right of action with treble damages for physicians. “That layered enforcement, paired with mandatory divestment, gives this bill teeth earlier laws often lacked,” he said.
The bill arrives as independent practice shrinks. As of this year, 82 percent of physicians are employed by hospitals or corporate entities, up from 62 percent in 2019. If enacted, it could help doctors retain control over medical decision-making and keep Wall Street from standing between patients and care.
