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RI S2459

Bill

Status

Introduced

2/6/2026

Primary Sponsor

Linda Ujifusa

Click for details

Origin

Senate

2026 Regular Session

AI Summary

  • Prohibits unlicensed individuals, corporations, and entities from owning medical practices, employing healthcare licensees, or practicing medicine, with exceptions for safety net clinics, public hospitals, school-based health clinics, and tribal health clinics

  • Requires physician-owned medical practices to have licensed physicians hold majority voting shares, comprise majority of directors, and fill all officer positions except secretary and treasurer

  • Bans management services organizations from interfering with clinical decisions, advertising medical practice services under their own name, or entering contracts that give them control over hiring, compensation, staffing levels, billing, pricing, or payor negotiations

  • Voids noncompetition agreements for healthcare licensees (unless they own 25% or more of the entity) and prohibits nondisclosure/nondisparagement agreements between licensees and management services organizations

  • Establishes enforcement through attorney general subpoena authority, $10,000/day penalties for violations, private right of action with up to $100,000 statutory damages per plaintiff per violation, and mandatory annual ownership reporting to the Department of Health beginning January 1, 2027

Legislative Description

Establishes the Rhode Island Ban on the Corporate Practice of Medicine Act.

Health And Safety

Last Action

Committee recommended measure be held for further study

3/3/2026

Committee Referrals

Health and Human Services2/6/2026

Full Bill Text

No bill text available