A new federal bill introduced on September 16, 2026, would establish a nationwide prohibition on the corporate practice of medicine and impose significant restrictions on how management services organizations (MSOs) can operate physician practices. The Stop Corporate Takeovers of Physicians Act of 2026 would require physician owners to hold majority ownership and control, while limiting MSO influence over hiring, physician schedules, compensation, revenue distribution, billing, contracting and certain administrative functions. Pasted text
The proposal comes amid continued debate over private equity and corporate ownership in healthcare. Research cited by MDLinx presents mixed findings: studies have reported changes in clinician turnover, services billed, patient volume and encounters following private-equity acquisitions, while another found no clinically meaningful change in hospitalizations. Earlier research specifically covering gastroenterology, dermatology and ophthalmology found increases in allowed amounts, patient volume and total encounters after private-equity acquisition. Pasted text
For GI practices, the proposal is particularly relevant given ongoing consolidation and the growth of physician-management platforms. However, the legislation is only a proposal and has not changed the rules governing most U.S. practices.