Federal Legislation
Congress Proposes Ban on Private Equity Hospital Ownership
March 24, 2026
Congressional leaders have introduced the Take Back Our Hospitals Act, a bicameral bill aiming to prohibit private equity firms from owning hospitals and nursing homes by making such facilities ineligible for Medicare funding. This legislative effort seeks to address concerns that private equity ownership prioritizes profit over patient care, potentially destabilizing healthcare facilities and impacting service quality. The bill's passage would significantly affect healthcare providers' eligibility for federal funding and reshape ownership structures within the healthcare sector.
- Why this matters: Healthcare providers owned or influenced by private equity should evaluate their Medicare funding eligibility risks and prepare for potential changes in ownership regulations.
- Procurement professionals should anticipate shifts in healthcare facility contracting and funding opportunities as ownership models evolve.
- Contractors and vendors serving hospitals and nursing homes may see changes in demand patterns depending on facility ownership and Medicare participation.
- Organizations involved in healthcare infrastructure and services should monitor legislative progress and adjust strategic planning accordingly.
We must crack down on private equity, whose greed is destroying our health care system for executives27 and shareholders27 profit, while patients are stuck footing the bill.
— Jeff Merkley
Private equity's general business model is pretty simple: find hospitals that are in dire financial straits, make promises to fix things and then squeeze every cent they can out of patients before leaving communities to deal with the wreckage.
— Chris Murphy
By preventing private equity-owned hospitals and nursing homes from qualifying for Medicare, this bill prioritizes health care facilities and ensures they can provide Americans with the quality care they deserve.
— Richard Blumenthal
Agencies
Medicare
Locations
Sources
- [2026-03-23] Murphy, Scanlon Introduce Bicameral Bill to Ban Private... · Murphy Senate · Mar 24