Oregon bill restricting corporate healthcare stalls in state Senate

OREGON, UNITED STATES — Oregon’s proposed ban on corporate practice of medicine, House Bill 4130, failed to pass the state Senate but is expected to be reintroduced in 2025.

The bill passed the Oregon House of Representatives in February, but due to time constraints, it stalled in the Oregon State Senate. Lawmakers believe that the bill would be reexamined in the 2025 session.

HB 4130 aimed to prevent potential conflicts between profit motives and patient care by limiting non-professional businesses from owning or controlling medical institutions through management models, which restrict physicians from seeking non-professional investors.

The proposed law aimed to amend existing statutes, prohibiting shareholders, directors, or officers of medical corporations from simultaneously managing or owning shares in both the corporation and a contracted management services organization (MSO). 

It also seeks to restrict MSOs from influencing clinical decisions, employment matters, and billing practices.

Supporters argue that the bill’s clauses would address concerns over the potential adverse impact of healthcare consolidation on competition, access to care, the workers, and quality of healthcare delivery.

Additionally, the bill would shield healthcare providers from perceived abuses by corporations.

Meanwhile, critics claim that the bill would limit the ability of health organizations to secure capital investments that could be used to improve patient care.

With Oregon’s healthcare sector employing over 200,000, the corporate practice battle is expected to continue when the legislature reconvenes in 2025.