Federal Bill Would Establish New Ownership and Management Requirements for Medical Practices
Federal lawmakers have introduced the Stop Corporate Takeovers of Physicians Act of 2026, legislation that would establish federal requirements governing the ownership, control and management of medical practices.
Under the bill, it would generally be unlawful for a partnership or corporate entity that is not majority-owned and controlled by one or more licensed health professionals to own or control a medical practice, employ a licensed health professional, or engage in the practice of medicine. The legislation defines majority ownership and control as licensed health professionals holding a majority ownership interest and constituting a majority of the entity’s governing body.
The proposal includes exceptions for nonprofit and public health care providers, hospitals, hospital-affiliated clinics, critical access hospitals and rural emergency hospitals.
The bill would also impose new requirements on management services organizations (MSOs) and other non-licensee entities that provide services to medical practices. According to summaries released by the bill’s sponsors, the legislation is intended to restrict arrangements that allow non-licensee entities to exercise control over medical practices through ownership or management structures. Sponsor materials state that the proposal would prohibit certain MSO arrangements involving control over practice operations, staffing, compensation, scheduling, billing, contracting and other business functions.
In addition, the legislation would establish protections related to clinical decision-making and professional judgment and would impose additional requirements concerning the ownership and governance of medical practices.
For medical spas, the bill could affect ownership and management models that rely on MSOs or other arrangements involving non-clinician investors. If enacted, the legislation would create a federal framework governing medical practice ownership and control, an area that has historically been regulated primarily at the state level.
The bill was introduced Sept. 16 and has been referred to committee. It must be approved by Congress and signed into law before taking effect.
