The Office of Inspector General recently approved the investment structure of Requestor, a medical technology company specializing in stroke treatment devices. Because the company was founded by a physician and remains partly owned by physicians, the decision could have far-reaching implications for how clinicians invest in healthcare ventures, Medscape reported Oct. 24.
The OIG’s decision signals a cautious but evolving stance on physician investment. As opportunities expand, physicians must navigate a fine line between entrepreneurship and ethical responsibility.
Here are six things to know:
1. The OIG found Requestor’s ownership model compliant with federal antikickback laws, noting that physician investors hold only 35% of the company, below the 40% threshold outlined in federal safe harbor regulations. While the ruling applies only to Requestor, experts say it may serve as a roadmap for physicians interested in similar ventures.
2. Physicians can safely invest in diversified exchange-traded funds and mutual funds, such as the Vanguard Total Stock Market Index, which is roughly 9% healthcare-related, Jackie Griggs, lead financial planner at Wrenne Financial, told Becker’s. The stake physicians own is so small that they couldn’t benefit from prescribing patterns.
3. In Illinois, physician-owned medical spas have become a popular and profitable alternative, especially for physicians willing to take an active management role rather than remain passive investors, according to the report.
4. Problems arise when physicians hold significant stakes in businesses that could benefit from their referrals or prescribing habits. Even unintentional financial ties can influence clinical decision-making and lead to inappropriate care, according to Medscape.
5. Although 2025 has brought a surge in enforcement, including more than 300 federal healthcare fraud cases filed over the summer, few laws directly restrict physician investment or address potential conflicts of interest. Physicians are barred from using insider knowledge for personal financial gain. The Stark law and anti-kickback statute prohibit self-referrals, where physicians direct patients to services that financially benefit themselves or family members.
6. The American Medical Association’s code of ethics discourages investments that could prioritize profit over patient welfare. That includes stakes in private equity firms influencing care delivery, ownership in products physicians recommend or consulting arrangements leveraging proprietary clinical data.
