Bill H.583, introduced by Representatives Black and Bluemle, seeks to regulate financial transactions involving health care entities in Vermont and prohibits the corporate practice of medicine. It establishes a new chapter titled "Transaction Limitations and Clinical Decision Making," defining key terms and outlining prohibited transactions, such as transferring ownership of essential community providers to outside parties and financing acquisitions through debt. The bill mandates public reporting on the ownership and control of certain health care entities, categorizing violations as breaches of the Consumer Protection Act. It also prohibits unlicensed individuals or entities from owning medical practices or employing licensed professionals, ensuring that clinical decision-making remains free from corporate interference.

Additionally, the bill introduces significant changes to the employment regulations of physicians, requiring that corporate entities employing them do not interfere with their professional judgment. It specifies conditions for medical practices to employ physicians, including majority ownership by licensed professionals, while exempting certain entities like federally qualified health centers from these requirements. The legislation voids restrictive covenants such as noncompetition and nondisclosure agreements, enhancing protections for employed licensees. It mandates transparency in ownership and control of health care entities, with detailed reporting requirements to the Attorney General and the Green Mountain Care Board. The bill also establishes enforcement mechanisms, including civil penalties for violations and the creation of a fund to support enforcement efforts, with an effective date of July 1, 2026.