Introduced in September 2026, H.R. 10444 would establish federal requirements governing who can own and control medical practices and how management services organizations can operate alongside them.
H.R. 10444 Proposes Federal Rules for Medical Practice Ownership and MSOs
On September 16, 2026, the U.S. House of Representatives introduced H.R. 10444, the Stop Corporate Takeovers of Physicians Act of 2026. The bill proposes federal restrictions on medical practice ownership and control, including requirements governing relationships between medical practices and management services organizations (MSOs), which, if enacted, may apply to certain Med Spa and aesthetic business structures.
Proposed Federal Bill Would Restrict Medical Practice Ownership and MSO Control
H.R. 10444 proposes federal corporate practice of medicine (CPOM) restrictions involving certain ownership and control of medical practices, along with separate restrictions governing relationships between medical practices and management services organizations (MSOs).
Proposed medical practice ownership and control requirements include:
- Majority ownership and governance: Under Section 2(a), a partnership or corporate entity that is not majority-owned and controlled by licensees generally could not own or control a medical practice, employ or contract for a licensee’s professional services, or practice medicine. The bill defines majority ownership and control as licensees holding at least a majority ownership interest and making up a majority of the entity’s governing body.
- Licensee owner requirements: Section 2(c) would require licensee owners to be licensed and present in a state where the practice provides patient services and substantially engaged in delivering medical care.
Proposed MSO restrictions include:
- Ownership and management: Section 2(b)(2) would restrict MSOs from taking specified roles involving practice ownership, management, acquisition financing, and transfers of ownership interests or assets.
- Management agreements: Under Section 2(b)(2)(A)(vi), MSO contracts would be subject to requirements including independent, arm’s-length negotiation and compensation reflecting fair market value.
- Operational control and branding: Section 2(b)(2)(A)(vii)–(viii) would restrict specified MSO authority over staffing, provider compensation, clinical policies, billing, pricing, payer contracts, and other practice operations. The provisions would also prohibit an MSO from advertising a medical practice’s services under another entity’s name.
H.R. 10444 remains proposed legislation. As of this reporting, it has not been enacted, and these proposed federal requirements are not in effect. The bill provides that its requirements would take effect one year after enactment if it becomes law.
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Legislative Record: H.R. 10444 Introduced in the U.S. House of Representatives
According to the legislative record, H.R. 10444 was introduced in the U.S. House of Representatives on September 16, 2026, and referred to the House Committees on Energy and Commerce and Ways and Means. The introduced bill text details the proposed medical practice ownership, licensee protection, and MSO requirements.
Compliance for Corporate Practice of Medicine and MSO Structures
Med Spas can fall within medical practice requirements when they provide medical procedures, while ownership and corporate practice requirements vary by state. A review of Med Spa oversight across 36 states documented differences in state requirements involving ownership, physician involvement, and supervision.
In California, corporate practice requirements involving physician-owned practices and MSO arrangements address physician control over clinical and business decisions, including clinical staffing, payer relationships, coding and billing procedures, and medical equipment.
If enacted, H.R. 10444 would establish federal compliance requirements for medical practices in several areas:
- Ownership structure: Qualifying ownership and governance requirements.
MSO agreements: Contract terms, negotiation, and compensation requirements. - Management authority: Limits on specified MSO involvement in practice operations.
- State and federal requirements: Applicable state requirements alongside the proposed federal standards.
H.R. 10444 expressly preserves state laws that impose equal or greater requirements involving practice ownership and control, licensee protections, or MSO restrictions. For Med Spa, aesthetic, and wellness businesses providing medical services, the proposed federal requirements could apply alongside applicable state requirements if the bill becomes law.
If enacted, H.R. 10444 would establish new federal requirements governing medical practice ownership and the corporate practice of medicine (CPOM), as well as relationships with management services organizations (MSOs).
Practical Implications for Med Spa and Aesthetic Practices
H.R. 10444 remains proposed legislation and does not change current requirements. For Med Spa operators following the bill, relevant areas to consider include:
- Determine whether services provided through the Med Spa or aesthetic practice constitute the practice of medicine and which services are provided through a medical practice
- Identify any state-level corporate practice of medicine (CPOM) requirements that apply to the practice’s ownership and control
- Examine how administrative functions and medical-practice authority are divided when an MSO structure is used
- Review the individuals and entities that hold ownership, governance, and management roles within the current practice structure
- Monitor H.R. 10444 for proposed federal requirements involving medical practice ownership, governance, and MSO relationships
What to Watch Next
H.R. 10444 has been referred to the House Committees on Energy and Commerce and Ways and Means. Further legislative developments may clarify the proposed federal requirements involving CPOM, MSO structures, and affected medical and aesthetic practices.
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Image Attribution: “US Capitol west side” by Martin Falbisoner, via Wikimedia Commons, licensed under CC BY-SA 3.0.
