House advances bill to limit corporate interference in clinical decision-making and require ownership disclosures

The Vermont House advanced H.583, a strike-all bill to enshrine clinical decision-making protections in statute and increase transparency when private equity or hedge funds hold ownership or investment interests in health care providers.

The bill adds a new chapter to Title 18 that would prohibit private equity groups or hedge funds from interfering with licensed providers’ clinical judgment — including decisions about treatment, equipment, coding and billing — while permitting nonclinical administrative services so long as licensed clinicians retain ultimate authority. It also requires affected health care facilities and management service organizations to report ownership and financial involvement to the Green Mountain Care Board by July 1, 2026, with public reporting and civil penalties for failures to report or for material misrepresentations.

Supporters framed the bill as protecting patient safety and provider autonomy as private corporate ownership of health care assets has grown. Committee testimony and floor remarks came from a wide range of stakeholders, including the Green Mountain Care Board, Vermont Medical Society, the Attorney General’s policy office, hospitals and researchers from Brown University and Harvard.

On the floor, members asked repeatedly for clarity about which firms operate in Vermont and whether the bill’s definitions would capture family offices, venture capital, or management service organizations. The presenter said the statute’s reporting requirements are designed to create the basic visibility Vermont currently lacks about ownership structures; several floor members referenced written testimony and a January 30, 2026, presentation by a Brown University researcher that cited specific private equity presence in opioid treatment programs and nursing-home ownership percentages.

The committee’s amendment also contains exemptions for certain entities (nursing homes, federally qualified health centers and others) and establishes civil penalties (up to $50 per day, up to $10,000 per year, and up to $25,000 for material misrepresentation). Supporters emphasized the bill does not ban private-equity investment in health care but seeks to ensure clinical decisions remain with licensed providers.

The House moved to order third reading following committee amendment; the transcript records voice votes and extended questioning, but does not include a roll-call tally.

Next steps: the bill, as amended, was ordered to third reading on the House floor.