Eugene Emergency Physicians, an Oregon-based emergency medicine group with about 41 providers in Lane County, is suing to block Vancouver, Wash.-based PeaceHealth’s planned partnership with ApolloMD, an Atlanta-based national physician staffing company, according to court documents shared with Becker’s.
The lawsuit, filed March 20 in an Oregon state circuit court, alleges the partnership violates Oregon’s corporate practice of medicine laws, including restrictions on management services organizations.
A spokesperson for ApolloMD declined to comment on pending litigation. PeaceHealth declined to comment, citing pending litigation, and said its focus remains on ensuring continuity of emergency services and providing high-quality care. In a statement shared with Becker’s, Eugene Emergency Physicians said the lawsuit aims to ensure compliance with Oregon law and preserve locally controlled emergency care services.
The lawsuit comes after PeaceHealth said in February it would not renew its 35-year contract with Eugene Emergency Physicians, instead opting to partner with ApolloMD to staff emergency departments at PeaceHealth Cottage Grove (Ore.) Community Medical Center, PeaceHealth Peace Harbor Medical Center and PeaceHealth Sacred Heart Medical Center at RiverBend.
According to the complaint, the arrangement involves a newly formed Oregon entity, Lane Emergency Physicians, which would hold the staffing contract, while ApolloMD provides administrative support. The plaintiffs allege ApolloMD would retain significant control over staffing, hiring and other operations.
ApolloMD has said the model complies with Oregon law, noting that the local entity is physician-owned and responsible for clinical decision-making, while the company provides nonclinical services such as billing, recruiting and data analysis, according to an Oregon Public Broadcasting report.
Eugene Emergency Physicians argues the decision violates Senate Bill 951, signed by Oregon Gov. Tina Kotek in June 2025, which has been described as among the nation’s toughest laws governing corporate and private equity control of medical practices.
Oregon law has long required that physicians hold a majority stake in most medical practices, and the new law further restricts arrangements in which companies employ physicians and use them as nominal clinic owners — sometimes referred to as “friendly physician” structures — to meet that requirement.
Eugene Emergency Physicians argues the arrangement is prohibited under Oregon law because it allows ApolloMD, a physician staffing company, to exert control over clinical operations, including “ultimate decision-making authority.”
The group said it had provided emergency medical services in Lane County for more than 35 years and was not given specific deficiencies or an opportunity to address concerns before PeaceHealth chose not to renew its contract. It also alleged that PeaceHealth and ApolloMD did not provide sufficient transparency around their agreement and that available information indicates potential violations of Oregon law.
The lawsuit seeks to void the agreement between PeaceHealth and ApolloMD, and block the company from operating in Oregon, according to the OPB report.
Meanwhile, Ms. Kotek has asked PeaceHealth to pause its plan to transition its emergency department staffing contracts for 180 days, citing concerns about patient safety during the transition.
In a March 20 letter to the governor shared with Becker’s, PeaceHealth said delaying the transition could create patient safety risks by disrupting staffing and recruitment efforts. The system said it followed a “structured and rigorous process” to select ApolloMD. Furthermore, PeaceHealth said it plans to move forward with implementation timelines of June 1 at PeaceHealth Sacred Heart Medical Center at RiverBend and July 1 at PeaceHealth Cottage Grove Community Medical Center and PeaceHealth Peace Harbor Medical Center.
Editor’s note: This story was updated March 24.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
