Federal CPOM Bill Would Bar Non-Physician Ownership, Treble Damages

Introduced September 16, 2026, the Stop Corporate Takeovers of Physicians Act of 2026 would create the first federal corporate practice of medicine regime. An entity not majority-owned and controlled by licensees (physicians, nurse practitioners, physician assistants) could not own or control a practice or contract for licensees' professional services, with exceptions limited to nonprofit and public providers, hospitals, hospital-affiliated clinics, critical access hospitals and rural emergency hospitals — so private equity and insurers are not singled out.

Beyond its Oregon model, management services organizations would face detailed prohibitions on owning practice interests, funding acquisitions, setting staffing, coding, pricing or payer contracting, and advertising under a brand other than the practice's; agreements would require arm's-length negotiation and fair market value determined by the FTC. The bill would also void non-compete, nondisclosure and non-disparagement agreements involving licensees, providers or MSOs, and require owners to be state-licensed and substantially engaged in practice — a hurdle for telehealth groups. Enforcement exposure would include FTC action, a private right of action with treble damages, state attorney general suits, divestment and disgorgement, and program exclusion.

The author assesses significant congressional headwinds, so treat this as a review trigger: audit friendly-PC structures and covenant packages, and watch for further state-level adoption.