Physicians First: Oregon’s Bold Move to Limit Corporate Control in Healthcare
Senate Bill 951, recently passed by the Oregon Senate, and signed into law on June 9, 2025, aims to ensure that clinical decisions are made by licensed medical professionals, not by private equity-backed management service organizations (MSOs) or business executives.
This legislation places clear limits on who can own and control medical practices: only licensed doctors, NPs, and PAs. MSOs are explicitly prohibited from exerting control over clinical staffing, diagnostic decisions, compensation, billing, work schedules, clinical policies, prices for medical services and more. The message is clear, patient care must remain in the hands of those trained to provide it.
Other key elements of the bill include:
Requiring physicians to hold voting control and leadership roles in practices.
Limiting the use of noncompete and nondisclosure agreements for medical professionals.
Providing protections for whistleblowers reporting in good faith.
Allowing MSOs to continue supporting non-clinical business operations, so long as they don’t cross into medical decision-making.
This law doesn’t apply to all entities—hospitals, rural health clinics, and some telemedicine providers are exempt. But it still signals a significant shift in how states are approaching the corporate practice of medicine.
Effective January 2026 for new arrangements (and 2029 for existing ones), this legislation adds momentum to a growing national trend: preserving the physician-patient relationship from non-clinical interference.
“We’re at an inflection point in this country when it comes to the corporatization of healthcare,” said House Majority Leader Ben Bowman, who introduced the bill. “With this legislation, Oregonians can be confident that decisions made in exam rooms are being led by doctors, not driven by corporate executives.” (State of Oregon, CPOM Press Release, May 28, 2025).
Will this help improve care quality or limit innovation and access? The debate continues.
What we do know is SB 951 will require significant changes for medical entities and MSOs in Oregon. Even with delayed implementation, now is the time to review and update contracts to ensure compliance. Multi-state platforms and telehealth providers should also assess how Oregon’s new rules may impact broader operations and future investments.
For questions about the impact of SB 951 on your organization or questions about the Corporate Practice of Medicine and other healthcare, corporate and employment law issues, please reach out to me at renee@engagelawchicago.com.
#HealthcareLaw #CorporatePracticeOfMedicine #MSO
