Bill introduced to prohibit private equity ownership of medical practices

Senator Elizabeth Warren on Thursday unveiled legislation that would prohibit private‑equity firms from acquiring or controlling physician‑owned medical practices in the United States. The “Medical Practice Ownership Reform Act” seeks to bar investment entities that prioritize profit over patient care from holding equity stakes in clinics, hospitals, and other health‑service providers, with the goal of preserving clinical autonomy and preventing cost inflation tied to financial engineering.

The bill outlines penalties for violations, including civil fines and the revocation of licenses for offending firms, and it calls for the Department of Health and Human Services to develop enforcement guidelines. Supporters cite growing concerns that private‑equity ownership has contributed to higher prices, reduced staffing, and rushed patient visits, while industry groups argue that such investment can bring needed capital and operational efficiencies. The proposal joins a broader legislative push to address consolidation in health care, and it is slated for committee review later this month.