Oregon Gov. Tina Kotek has signed a bill into law that sets the nation’s strictest regulations on private and corporate control of medical practices, the Oregon Capital Chronicle reported June 9.
State law mandates that physicians hold at least a 51% stake in most medical practices, but supporters of the new legislation say that companies have taken advantage of a loophole by employing their own physicians and putting their names down as clinic owners, according to the report.
The legislation limits the control companies can have in a clinic’s operations and also bans noncompete agreements that prohibit physicians from taking a position at a different practice, the report said. The bill does not take effect immediately and has a three-year adjustment period for facilities to comply with the new restrictions.
Hospitals, tribal health facilities, behavioral health programs and crisis lines are exempted from the legislation, according to the report.
The legislation was opposed by the Oregon Ambulatory Surgery Center Association, an industry group that argued “the way to protect clinics from closure and maintain the broadest patient access to outpatient care is to keep the existing, and multi-ownership models alive and well.”
Support for the legislation was driven by Optum’s takeover of Eugene-based Oregon Medical Group, according to the report. The area lost dozens of physicians after Optum required them to sign noncompete contracts. Optum reversed the requirement in May 2024 following pressure from lawmakers.
