Stop Corporate Takeovers of Physicians Act of 2026

This bill, the Stop Corporate Takeovers of Physicians Act of 2026, aims to protect physicians and other licensed health professionals by prohibiting corporate entities not majority-owned by licensees from owning medical practices or employing licensees, and by placing restrictions on management services organizations and non-compete agreements. It also provides for enforcement by the Federal Trade Commission and private lawsuits.

Sec. 2, Prohibition on corporate practice of medicine and protections: It is unlawful for a partnership or corporate entity not majority-owned and controlled by licensees (physicians or advanced practice providers) to own a medical practice, employ a licensee, or practice medicine. Exceptions include non-profit or public health care providers and certain hospitals. Licensees are protected from non-compete clauses (except for owners with 25% or more interest) and non-disclosure agreements, and health care providers cannot interfere with a licensee's clinical judgment. Management services organizations are restricted from controlling medical practice shares, dividends, operations, or clinical decisions. Violations are treated as unfair or deceptive acts under the FTC Act, with enforcement by the FTC, private rights of action for treble damages, and state attorney general actions.

Sec. 3, Federal health programs: The Social Security Act is amended to allow for the exclusion from federal health programs of any entity that violates the restrictions on management services organizations in section 2.

Sec. 4, Preemption: This Act does not override state laws that impose equal or more stringent ownership requirements, provide greater protections to licensees, or impose stricter restrictions on management services organizations.