Sen. Elizabeth Warren (D-Massachusetts) and 12 other Democrats introduced bicameral legislation Wednesday to ban private equity firms, insurance companies, and for-profit corporations from owning medical practices. The bill mirrors an Oregon law enacted this year that physicians in Eugene successfully used to block a corporate takeover. It also prohibits management services organizations from controlling practice operations.

Private equity investment in health care surged from $5 billion in 2000 to $104 billion in 2024. KFF data shows medical costs rose 121 percent from 2000 to 2004 versus 86 percent for the broader consumer price index. Research links private equity ownership to higher costs and worse patient outcomes, especially in nursing homes. Employers project an 11 percent increase in health plan costs per worker in 2027, while Affordable Care Act plans face hikes due to Republican cuts in the One Big Beautiful Bill.

As of this year, 82 percent of physicians are employed by hospitals or corporate entities — a 20-point jump from 62 percent in 2019. Warren stated, “Patients want to know that decisions about their health are being made by their doctors, not by Wall Street investors.” The bill provides three enforcement paths: the FTC, state attorneys general, and a private right of action for physicians with treble damages. Marco Fernandez, president of the Association for Independent Medicine, called the layered enforcement and mandatory divestment provisions the bill’s “teeth.”