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Sidley Austin says it analyzed a proposed federal corporate practice of medicine restriction
Sidley Austin said it analyzed the Stop Corporate Takeovers of Physicians Act of 2026, introduced in Congress on September 16. The firm said the proposal would generally bar entities not majority-owned and controlled by licensed providers from owning medical practices, employing providers or practicing medicine.
Key points
- Sidley Austin said exemptions include nonprofit and public healthcare providers, hospitals and specified rural facilities.Sidley Austin
- The firm said management services agreements would require arm’s-length negotiation through legal counsel.Sidley Austin
- Sidley Austin said management fees would need to meet fair-market-value requirements determined by the Federal Trade Commission.Sidley Austin
- The firm said the bill would restrict provider noncompete, nondisclosure and nondisparagement agreements.Sidley Austin