Bill to Ban Private Equity from Owning Medical Practices
Recorded: Sept. 20, 2026, 11:09 p.m.
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Warren Introduces Bill to Ban Private Equity From Owning Medical Practices | Truthout Skip to content Skip to footer Truthout Logo Truthout Latest About Donate ABOUT Trending:
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Trump Administration Education Public Health Immigration More About Donate Manage Your Donation Support Our Work Subscribe Submission Guidelines Financial Information Privacy Policy Memorial Essay Prize Truthout Center for Grassroots Journalism Job Openings Contact Us © 2026 Truthout News | Warren Introduces Bill to Ban Private Equity From Owning Medical Practices More than 80 percent of doctors are employed by corporate entities — a massive increase from 62 percent seven years ago. By Sharon Zhang , Truthout Published September 17, 2026 Sen. Elizabeth Warren questions U.S. Trade Representative Jamieson Greer during the Senate Finance Committee hearing titled "The President's 2026 Trade Policy Agenda," in Dirksen building on Wednesday, July 22, 2026.Tom Williams / CQ-Roll Call, Inc via Getty Images Truthout is an indispensable resource for activists, movement leaders and workers everywhere. Please make this work possible with a quick donation. A group of Democrats has introduced bicameral legislation to ban private equity from owning medical practices as increasingly widespread corporate ownership continues driving up health care costs each year. Related Story News | Parents of Trans Kids Slam Mount Sinai for Permanently Ending Trans Youth Care “They’re turning away children, and they’re refusing to provide care that is life-saving,” one parent said. By Shireen Akram-Boshar , Truthout September 15, 2026 Truthout In large part due to rising costs for care, health coverage costs are slated to rise precipitously next year. A recent survey found that employers expect health care plan costs to rise by an average of 11 percent per worker in 2027, unless benefits are cut. This could translate to higher costs for workers and patients on job-based insurance if employers shift the burden onto them; costs for plans through the Affordable Care Act are also expected to rise significantly due to Republicans’ massive slashes via the One Big Beautiful Bill. 25 Years of Truthout: An important fundraising appeal Share Share via Facebook
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Article HTML Republish HTML code for copying <p><strong>By Sharon Zhang</strong></p> <p><em>This article was originally published by </em> <a href src="https://truthout.org/articles/warren-introduces-bill-to-ban-private-equity-from-owning-medical-practices/">Truthout</a></p> <p><strong><p>More than 80 percent of doctors are employed by corporate entities — a massive increase from 62 percent seven years ago.</p></strong></p> <p class="wp-block-paragraph">A group of Democrats has introduced bicameral legislation to ban private equity from owning medical practices as increasingly widespread corporate ownership continues driving up health care costs each year.</p> <p class="wp-block-paragraph">The bill was <a href="https://www.warren.senate.gov/wp-content/uploads/2026/09/Stop-Corporate-Takeovers-of-Physicians-Act-for-circ.-2026.pdf">introduced</a> Wednesday by Sen. Elizabeth Warren (D-Massachusetts) with the support of 12 other members of the Senate and House. The legislation was based on a <a href="https://chir.georgetown.edu/state-spotlight-oregons-multi-pronged-approach-to-corporate-influence-in-physician-practices/">law in Oregon</a> aimed at beating back the corporate takeover of health care providers that took effect this year. The law has already <a href="https://www.opb.org/article/2026/05/07/peacehealth-eugene-emergency-physicians-apollomd-contract/">been successfully used</a> by physicians in Eugene to prevent a corporate takeover.</p> <p class="wp-block-paragraph">Warren’s bill would ban for-profit corporations like private equity funds and insurance companies from owning medical practices, while also prohibiting entities known as management services organizations, which conduct business operations for practices, from controlling such offices.</p> <p class="wp-block-paragraph">Such a prohibition could help stanch the rapid rise in health care costs. Between 2000 and 2004, <a href="https://www.healthsystemtracker.org/brief/how-does-medical-inflation-compare-to-inflation-in-the-rest-of-the-economy/">KFF found</a>, costs for medical care far outpaced costs for goods and services at large, increasing by 121 percent compared to 86 percent for the rest of the consumer price index.</p> <p class="wp-block-paragraph">The growing grip of private equity on health care, <a href="https://truthout.org/articles/private-equity-now-owns-1-in-8-apartment-units-a-50-percent-increase-since-2021/">like in</a> <a href="https://www.pbs.org/newshour/show/as-veterinary-costs-climb-private-equity-ownership-of-clinics-draws-scrutiny">other sectors</a>, has played a major role in this rise in costs. In 2000, private equity <a href="https://www.cbh.com/insights/reports/private-equity-report-2024-trends-and-2025-outlook/">invested $5 billion</a> in health care; by 2024, this had risen to $104 billion. Since private equity firms are focused not on patient care, but on maximizing profits, <a href="https://chir.georgetown.edu/evidence-on-private-equity-suggests-that-containing-costs-and-improving-outcomes-may-go-hand-in-hand/">research has found</a> that private equity ownership is associated with worse outcomes for patients as well as higher costs, particularly in nursing homes.</p> <p class="wp-block-paragraph">In large part due to rising costs for care, health coverage costs are slated to rise precipitously next year. A recent <a href="https://www.mercer.com/en-us/insights/us-health-news/survey-health-benefit-costs-expected-to-jump-in-2027/">survey found</a> that employers expect health care plan costs to rise by an average of 11 percent per worker in 2027, unless benefits are cut. This could translate to higher costs for workers and patients on job-based insurance if employers shift the burden onto them; costs for plans through <a href="https://www.kff.org/affordable-care-act/how-much-and-why-aca-marketplace-premiums-are-going-up-in-2027/">the Affordable Care Act</a> are also <a href="https://truthout.org/articles/sanders-health-insurance-premiums-will-double-for-millions-due-to-gop-cuts/">expected to rise significantly</a> due to Republicans’ massive slashes via the One Big Beautiful Bill.</p> <p class="wp-block-paragraph">“Patients want to know that decisions about their health are being made by their doctors, not by Wall Street investors,” said Warren. “If we’re going to lower costs and un-rig the health care system, we need to stop the corporate takeover of medicine.”</p> <p class="wp-block-paragraph">The passage of the bill could also help allow physicians to retain control in their practices, including in their medical decisionmaking, at a time when private equity and other corporate actors are close to gobbling up almost the entire field of medical providers. </p> <p class="wp-block-paragraph">As the lawmakers point out, research <a href="https://www.physiciansadvocacyinstitute.org/PAI-Research/PAI-Avalere-Health-Report-on-Physician-Employment-Trends-and-Practice-Acquisitions-2018-2026">has found</a> that, as of this year, 82 percent of physicians are employed by hospitals or other corporate entities as the industry shifts away from private practices. This is a 20-point increase from 2019, when 62 percent of physicians were employed this way.</p> <p class="wp-block-paragraph">The legislation has been backed by numerous health and advocacy groups, who say that private equity must be barred from standing between patients and receiving good health care.</p> <p class="wp-block-paragraph">“A prohibition is only as strong as its enforcement, and this bill backs its corporate practice of medicine prohibition with three enforcement paths: the FTC, state attorneys general suing on behalf of residents, and physicians themselves through a private right of action with treble damages,” said Marco Fernandez, president of the Association for Independent Medicine. “That layered enforcement, paired with mandatory divestment, is what gives this bill teeth that earlier [Corporate Practice of Medicine] laws have often lacked.”</p> <hr> <p><em>This <a href="https://truthout.org/articles/warren-introduces-bill-to-ban-private-equity-from-owning-medical-practices/">article</a> was originally published by <a href="https://truthout.org">Truthout</a> and is licensed under <a href="https://creativecommons.org/licenses/by-nc-nd/4.0/" rel="license">Creative Commons (CC BY-NC-ND 4.0)</a>. Please maintain all links and credits in accordance with our <a href="https://truthout.org/republishing-policy">republishing guidelines</a>.</em></p> Copy this HTML code to republish the article on your website Close Copy HTML
This article is licensed under Creative Commons (CC BY-NC-ND 4.0), and you are free to share and republish under the terms of the license. Sharon Zhang Sharon Zhang is a news writer at Truthout covering international affairs, politics, and labor. She has a master’s degree in environmental studies. She can be found on Twitter and Bluesky. Truthout Share Share via Facebook
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A group of Democrats has introduced bicameral legislation aimed at banning private equity from owning medical practices, prompted by the increasing role of corporate ownership in driving up healthcare costs. This legislation, introduced by Senator Elizabeth Warren with support from twelve other members of the Senate and House, is based on a law from Oregon designed to resist the corporate takeover of healthcare providers that was implemented earlier in the year. The proposed legislation seeks to prohibit for-profit corporations, such as private equity funds and insurance companies, from owning medical practices, as well as preventing management services organizations from controlling the operations of these offices. The rationale behind this prohibition is tied to the escalating costs of healthcare. Research indicates that the growing influence of private equity in the healthcare sector has contributed significantly to these cost increases. For instance, between 2000 and 2004, the costs for medical care increased by 121 percent compared to the general consumer price index, showing that medical costs significantly outpaced costs for goods and services. Furthermore, private equity’s focus on maximizing profits rather than patient care has been associated with poorer patient outcomes and higher costs, particularly within nursing homes. Data shows that private equity invested five billion dollars in healthcare in 2000, escalating to one hundred four billion dollars by 2024. The legislation addresses the context of corporate influence on the medical profession, noting that there is a significant shift away from private practices. As of the current year, eighty-two percent of physicians are employed by hospitals or other corporate entities, marking a twenty-point increase from sixty-two percent in 2019. This trend reflects the broader corporate absorption of the medical field. The bill is framed around restoring patient-centered decision-making, with proponents arguing that patients deserve to know decisions regarding their health are made by physicians rather than Wall Street investors. This move is intended to help physicians retain control over their practices and medical decision-making amidst the corporate consolidation of providers. Concerns about rising costs further motivate the bill, as health coverage costs are projected to rise substantially next year; for example, employers anticipate health care plan costs to increase by an average of eleven percent per worker in 2027 unless benefits are reduced. Advocacy groups supporting the measure contend that private equity must be barred from positioning itself between patients and quality healthcare. To strengthen the impact of the proposal, the legislation incorporates multiple enforcement mechanisms. These include action by the Federal Trade Commission, lawsuits by state attorneys general on behalf of residents, and the ability for physicians to pursue private rights of action, including claims for treble damages. This layered enforcement strategy, coupled with mandatory divestment, is intended to provide the necessary leverage against corporate practices of medicine. |