Vermont signed a law prohibiting private equity firms and hedge funds from interfering in medical practice at healthcare facilities they back, making it the third state in less than a year to restrict corporate investors' role in medicine. The legislation also mandates public disclosure of healthcare ownership structures.

The American Medical Association publicly supported similar federal legislation this week, reflecting growing physician and legislative concern about private equity's influence on patient care. States including Florida and Nevada have enacted comparable restrictions since early 2023.

The Vermont law directly targets corporate governance practices that critics argue compromise clinical decision-making. Healthcare companies receiving private equity investment must now publicly report their ownership details, increasing transparency around investment structures.

This regulatory shift signals mounting state-level resistance to financialization of healthcare delivery. With Vermont joining other states, the movement pressures private equity firms to reconsider their healthcare acquisition strategies amid mounting political headwinds.