Stop Corporate Takeovers of Physicians Act of 2026

This bill prohibits non-physician-owned corporations from owning medical practices, employing physicians, or practicing medicine, and establishes protections for licensed health professionals and restrictions on management services organizations. It is enforced by the Federal Trade Commission and includes a private right of action.

Sec. 2, Prohibition on corporate practice of medicine: It is unlawful for a partnership or corporate entity not majority-owned and controlled by licensed health professionals (physicians, physician assistants, or nurse practitioners) to own or control a medical practice, employ a licensee, or practice medicine. Exceptions include non-profit or public health care providers, hospitals, hospital-affiliated clinics, critical access hospitals, and rural emergency hospitals.

Sec. 2, Protections of licensees: Non-compete clauses and non-disclosure or non-disparagement agreements between licensees and health care providers or management services organizations are generally void and unenforceable, except for non-compete clauses with licensees owning 25% or more of a medical practice. Health care providers cannot interfere with a licensee's professional judgment or clinical decisions, including dictating patient time, clinical status, treatment speed, referrals, diagnoses, or clinical orders.

Sec. 2, Restrictions on management services organizations: Such organizations cannot control the sale of a medical practice's shares, issue ownership interests, pay dividends, own shares, serve as directors, acquire shares, or contract without arm's-length negotiation and fair market value compensation. They cannot advertise under another entity's name or exercise de facto control over clinical or business operations, including hiring, scheduling, compensation, staffing, revenue disbursement, credentials, revenue targets, diagnostic coding, clinical standards, billing, pricing, or payer contracts. Any violating agreement is void.

Sec. 2, Requirement of licensee owners: Licensee owners of a medical practice must be licensed and present in a state where services are furnished and substantially engaged in delivering medical care.

Sec. 2, Definitions: Key terms are defined, including 'Commission' (Federal Trade Commission), 'health care provider', 'licensee' (physicians and advanced practice providers), 'management services organization', 'medical practice', and 'non-compete clause'.

Sec. 2, Enforcement: Violations are treated as unfair or deceptive acts under the FTC Act. The FTC enforces the section, including against non-profit organizations. Injured persons can sue for treble damages, attorney's fees, and other relief. State attorneys general can bring civil actions. Courts must order cease and desist, divestment, and disgorgement of revenue. Either party can request a jury trial.

Sec. 2, Effective date: The requirements take effect one year after enactment.

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.

Sec. 4, Preemption: The Act does not preempt state laws that impose equal or more stringent ownership and control requirements, afford equal or greater protections to licensees, or impose equal or more stringent restrictions on management services organizations.