On February 6, Rhode Island introduced legislation that would significantly expand its corporate practice of medicine (CPOM) restrictions and impose new healthcare ownership transparency requirements. The proposal would prohibit unlicensed entities from owning medical practices or employing licensed providers, while requiring physicians to hold majority ownership and control. It also targets MSO arrangements by banning “straw ownership” structures and reinforcing physician authority over clinical decision-making.
The Act would also require annual reporting beginning in 2027 to the Rhode Island Department of Health, including detailed ownership, financial, and organizational information, with enforcement through audits and penalties. However, key terms such as “medical practice” and “healthcare licensees” remain undefined, leaving uncertainty around the scope of the law.
This proposal reflects a broader national trend, with similar CPOM-focused efforts emerging in Washington, New Mexico, Vermont, and Maine. Collectively, these developments signal increasing regulatory focus on healthcare ownership, transparency, and preserving physician control amid evolving care models.
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