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Following in Oregon’s footsteps, Congress has introduced the Stop Corporate Takeovers of Physicians Act to stop private equity firms, insurance companies, or other corporate actors from making healthcare decisions.
They Circumvent Restrictions to the Detriment of the Healthcare Profession and Its Patients
Corporate entities have exploited legal loopholes to circumvent restrictions to the detriment of clinicians and patients, the bill’s sponsors said in a press statement released Sept. 16.
Supported by Oregon Senators Ron Wyden and Jeff Merkley, and Representative Val Hoyle, the politicians say private equity firms, insurers, and other corporate entities often assume control over clinical operations, management and staffing decisions, and billing and coding practices.
They say corporate entities exert pressure on physicians to change healthcare delivery services. The Act will ensure that physicians, and not corporate actors, will make healthcare decisions.
Tidings Data Snapshot
What the Federal Bill Would Change| Area | Proposed rule |
|---|---|
| Ownership | Licensed professionals must hold majority ownership and control |
| MSOs | Barred from owning or exercising de facto control over medical practices |
| Contracts | Most noncompete and nondisclosure restrictions prohibited |
| Effective date | One year after enactment |
Source: H.R. 10444, Stop Corporate Takeovers of Physicians Act of 2026DailyTidings.com
According to the press statement, Management Services Organizations (MSOs) that contract with physicians to ‘ostensibly’ handle administrative tasks challenge the autonomy of physicians once they are in control.
More Than 80% of U.S. Doctors are Employed by Corporate Entities
Introducing the bill in the House, U.S. Congresswoman Val Hoyle (D-Oregon) said over 80% of U.S. doctors are employed by corporate entities, up from 62% in 2019.
Oregon Senate Bill Bans ‘Straw Doctors’
Oregon passed the strongest ban on corporate healthcare practice with Senate Bill 951. The bipartisan bill banned the ‘straw doctor’ model used by private equity firms and corporations to control medical practices.
Championed by House Majority Leader Ben Bowman (D-Tigard, Metzger, South Beaverton), the bill was signed into law by Governor Tina Kotek in June last year.
When PeaceHealth reversed course and agreed to continue working with Eugene Emergency Physicians (EEP) in May 2026, Oregon lawmakers described it as a legal victory for the state’s corporate practice of medicine law.
PeaceHealth planned to replace EEP with a Georgia-based management corporation and its newly formed entity, Lane Emergency Physicians.
In March 2026 EEP filed a federal court lawsuit seeking an injunction to block the transition, arguing that it violated Senate Bill 951. The federal judge raised serious questions about the legality of the transition, and the structure of the incoming corporate arrangement.
Bowman will continue efforts to strengthen Oregon state laws to protect local medical care following Oregon’s successful campaign against corporate profiteering.
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