Bill
Bill > SB951
summary
Introduced
01/28/2025
01/28/2025
In Committee
05/22/2025
05/22/2025
Crossed Over
04/09/2025
04/09/2025
Passed
06/20/2025
06/20/2025
Dead
Signed/Enacted/Adopted
06/20/2025
06/20/2025
Introduced Session
2025 Legislative Measures
Bill Summary
AN ACT Relating to the practice of health care; creating new provisions; amending ORS 58.375 and 58.376; and declaring an emergency. Whereas the State of Oregon since 1947 has recognized that a conflict exists between the eco- nomic imperatives of for-profit corporations and other business entities and the need for patient- centered medical care; and Whereas an Oregon Supreme Court decision banned corporations from owning medical practices, practicing medicine or employing physicians for that reason; and Whereas many business entities have sought to circumvent the ban through complex ownership structures, contracting practices and other means, particularly in recent years; and Whereas the State of Oregon must protect the health, safety and welfare of residents of this state by responding to initiatives that threaten to usurp or have the effect of usurping the medical judgment of physicians and other practitioners in this state in favor of cost-cutting and profit- making, often at the expense of and in opposition to the best interests of patients; and Whereas some business entities have sought to silence criticism of their operations and man- agement practices through nondisclosure, noncompetition and nondisparagement agreements and other devices that stifle reporting of and accountability for these operations and practices; and Whereas to protect the best interests of patients in this state, and enable medical practitioners to exercise medical judgment free from interference from those who are not licensed to practice medicine in this state, the Legislative Assembly must prohibit business entities from practicing medicine or employing actively practicing physicians and other practitioners and using noncompe- tition agreements, nondisclosure agreements and nondisparagement agreements to restrict reason- able and honest criticism; now, therefore,
AI Summary
This bill addresses the regulation of medical practices in Oregon, focusing on preventing corporations from inappropriately controlling medical care. It establishes strict limitations on management services organizations (MSOs) and their interactions with professional medical entities. Specifically, the bill prohibits MSOs from owning or controlling a majority of shares in medical practices, serving as directors or officers, exercising voting rights, or controlling clinical decision-making. The legislation defines key terms like "management services," "medical licensee," and "professional medical entity" and outlines detailed restrictions on how these organizations can interact with medical practices. The bill also addresses noncompetition, nondisclosure, and nondisparagement agreements, making many such agreements void or unenforceable for medical professionals. Additionally, it provides protections for medical licensees who report potential violations of laws or regulations, preventing retaliation. The bill applies to medical practices, including those for physicians, physician associates, nurse practitioners, and naturopathic physicians, with some exceptions for specific types of healthcare organizations. The provisions will be implemented in stages, with full implementation by January 1, 2029, and the bill is declared an emergency measure to immediately preserve public health and safety.
Committee Categories
Health and Social Services
Sponsors (23)
Ben Bowman (D)*,
Wlnsvey Campos (D)*,
Sarah Finger McDonald (D)*,
Lisa Fragala (D)*,
Chris Gorsek (D)*,
Cyrus Javadi (D)*,
Nancy Nathanson (D)*,
Mark Owens (R)*,
Deb Patterson (D)*,
Lisa Reynolds (D)*,
Kathleen Taylor (D)*,
Kim Wallan (R)*,
Tom Andersen (D),
Mark Gamba (D),
James Manning (D),
Emily McIntire (R),
Mark Meek (D),
Travis Nelson (D),
Katherine Pham (D),
Floyd Prozanski (D),
Thuy Tran (D),
Suzanne Weber (R),
Aaron Woods (D),
Last Action
Effective date, June 9, 2025. (on 06/20/2025)
Official Document
bill text
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