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RI S2459
Bill
Status
2/6/2026
Primary Sponsor
Linda Ujifusa
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AI Summary
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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
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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
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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
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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
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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