Bill to Ban Private Equity from Owning Medical Practices

Democratic lawmakers have introduced bicameral legislation to ban private equity firms from owning medical practices, as rising corporate control drives up healthcare costs. The bill, introduced by Sen. Elizabeth Warren (D-Massachusetts), follows Oregon's successful law against corporate takeovers. Warren argues that private equity's focus on profit maximization rather than patient care results in worse outcomes and higher costs.

The legislation aims to prevent physicians from relinquishing control over their practices, with prevalence reaching 82% of doctors employed in corporate entities. Enforcement would involve the FTC, state attorneys general, and physicians via private right of action with treble damages. The bill faces threats to its passage, given the current political climate, but health and advocacy groups support its passage.