Legal·8d ago
Warren, Wyden Introduce Bill to Ban Corporate Practice of Medicine Nationwide
In its September 25 publication, Foley & Lardner reports that Senators Elizabeth Warren, Ron Wyden, and Jeff Merkley, along with three House members, introduced the Stop Corporate Takeovers of Physicians Act on September 16, 2026. The legislation would impose federal restrictions on corporate practice of medicine (CPOM), targeting private equity ownership structures and management services organization (MSO) arrangements commonly used in physician practice acquisitions. If enacted, the bill would affect how private equity firms and corporate entities structure their investments in physician practices, potentially requiring restructuring of existing MSO-based transactions that rely on management agreements to circumvent state CPOM restrictions. The legislation matters for Medicaid managed care organizations and providers because many MCO networks include physician groups owned through MSO structures, and federal CPOM restrictions could disrupt network composition, provider contracting models, and care delivery arrangements.