Vermont's recently enacted “Act Relating to Health Care Financial Transactions and Clinical Decision Making” adds the state to a growing national movement to limit private equity and hedge fund influence over healthcare practices. The law, which took effect July 1, prohibits these investors from interfering with clinical operations — including patient care plans, hiring decisions, and pricing — and requires disclosure of ownership structures.
Jordan Grushkin noted that the legislation “certainly follows some common themes of other states,” even as it takes a distinct approach by not directly regulating ownership structures the way Oregon’s law does. He explained that the law is “more focused on the spirit of corporate practice of medicine, which is that private and lay organizations and individuals shouldn’t be involved in clinical decisions.”
Grushkin also flagged a notable feature of Vermont’s law: its creation of a private right of action that allows physicians to sue corporate entities for illegal interference. He cautioned that this provision meaningfully elevates legal risk for private equity and hedge fund investors operating in the state. “Anybody could potentially bring an action, and that could escalate things,” Grushkin added.
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