Summary of S 3822: Prohibiting Conflicts of Interest in Healthcare Ownership

Overview

This bill, introduced in the Senate on February 10, 2026, aims to prevent conflicts of interest in the healthcare industry by prohibiting certain types of common ownership between healthcare entities.

Key Provisions

• Prohibits pharmacy benefit managers (PBMs), health insurers, and pharmaceutical/medical device wholesalers from being under common ownership with healthcare providers such as hospitals, clinics, or medical practices.
• Requires PBMs, insurers, and wholesalers to divest any ownership stakes in healthcare providers within 2 years of the bill's enactment.
• Imposes civil monetary penalties of up to $100,000 per day for violations of the common ownership ban.
• Grants the Federal Trade Commission (FTC) authority to enforce the provisions of the bill and promulgate related regulations.

Rationale and Intent

The bill's sponsors argue that common ownership between healthcare entities like PBMs, insurers, and providers creates conflicts of interest that can lead to higher prices, reduced patient choice, and suboptimal care. The goal is to promote competition, transparency, and alignment of incentives in the healthcare system.

Potential Impact

• PBMs, insurers, and pharmaceutical wholesalers would be required to restructure their business models and divest any provider-owned assets.
• Patients may see changes in their healthcare options and costs as a result of the new ownership restrictions.
• The FTC would gain additional regulatory oversight and enforcement power in the healthcare industry.
• The bill could face opposition from industry groups concerned about the operational and financial impacts of the proposed changes.

Timeline

• Introduced in the Senate on February 10, 2026
• Referred to the Senate Committee on the Judiciary for consideration
• If enacted, the common ownership ban would take effect 2 years after the bill's passage, giving affected companies time to comply.