Latest news with #SenateBill951
Yahoo
a day ago
- Health
- Yahoo
Bill enacting nation's strictest limits on corporate health care influence signed by Gov. Kotek
A doctor works at a pharmacy. Corporate investors eyeing local health care facilities in Oregon could soon face one of the hardest markets nationwide. () Corporate investors hoping to take over local health care facilities in Oregon could soon face one of the hardest markets nationwide. Senate Bill 951, which was quietly signed into law by Gov. Tina Kotek on Monday, sets the strongest regulations on private and corporate control of medical practices in the nation, according to industry lawyers. A similar effort failed in the Legislature last year amid pushback from Republicans that prevented the bill from meeting key legislative deadlines. The governor told reporters at a news conference Monday that the bill should be a model for other states and for Congress. 'We need to make sure that our health care providers and our delivery system stays local and is controlled locally,' she said. 'That's what that bill is trying to do.' The legislation was opposed by companies such as Amazon and the statewide nonprofit Oregon Ambulatory Surgery Center Association, an industry group, where executives see private investment as vital to their business strategy. 'We universally agree that 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,' wrote Ryan Grimm on behalf of the association and the Portland Clinic, a private multispecialty medical group, in a March letter to lawmakers. 'In some communities, there is no hospital to swoop in to the rescue, or no hospital in a financial position to save a clinic,' he wrote. The bill does not go into effect immediately and it contains a three-year adjustment period for clinics to comply with the restrictions. Institutions such as hospitals, tribal health facilities, behavioral health programs and crisis lines are exempted. 'We're at an inflection point in this country when it comes to the corporatization of healthcare,' wrote House Majority Leader Ben Bowman, D-Tigard, in a statement May 28 following the bill's passage in the Oregon House. 'With the passage of this bill, every Oregonian will know that decisions in exam rooms are being made by doctors, not corporate executives.' The signature from Kotek deals a major victory to local providers and doctors, who sought to wrest back control over their practices in key decisions such as spending, staffing levels, physician ownership stake, and the price of services. The legislation would close what supporters say is a loophole in state law, which mandates that doctors hold at least a 51% stake in most medical practices, but which companies have taken advantage of by employing their own doctors — sometimes from out of state — and putting them down on paper as clinic owners. Then the company itself, or a hired management service, is brought in to handle payroll, accounting and other services, shifting away control and revenues from the clinic to the company, and from what was once a locally operated business. The bill limits the control such companies can have in a clinic's operations and would ban noncompete agreements used by companies to prohibit doctors from taking a job at a different practice. Support for the bill coalesced around the takeover of the Eugene-based Oregon Medical Group by the health care giant Optum, one of the nation's largest employers of physicians. The surrounding area lost dozens of doctors, leaving over 10,000 people without care, according to a Frequently Asked Question's document from Sen. Deb Patterson, D-Salem, after Optum required its doctors to sign non-compete contracts. Optum reversed course after pressure from lawmakers in May 2024. 'This bill is about preventing the kind of takeover that happened at the Oregon Medical Group in Eugene,' wrote state Rep. Lisa Fragala, D-Eugene, in a May statement. 'When we see consolidation in the healthcare market, we see three things happen: higher prices, negative effects on the quality of care and decreased access to care.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
05-02-2025
- Business
- Yahoo
Oregon legislation would help keep private equity out of exam room
The struggle for control over our health care system has reached a critical turning point in Oregon, with the influx of private equity firms and other investor-driven entities into the market. Though Oregon has long had a doctrine protecting the patient-doctor relationship, private capital's intervention in medical decisions now compromises this doctrine. But this session, lawmakers will again consider legislation that aims to restore a balance and safeguard the core values of Oregon's health care system, prioritizing patient care over corporate greed. The legislation, Senate Bill 951, stems from a trend that has occurred over the past decade. Private equity has initiated a wave of acquisitions, transforming hospitals, clinics, and nursing homes into profit-driven entities. While private equity firms promise innovation and efficiency, the reality is much bleaker. Leveraged buyouts burden health care facilities with overwhelming debt, and the consolidation of smaller practices into impersonal conglomerates managed by out-of-state interests diminishes patient care. These strategies are designed to extract profits rather than enhance care. Patients face escalating costs without corresponding improvements in quality, and studies have associated private equity-backed facilities with poorer outcomes, including higher mortality rates. Oregon has experienced these effects firsthand. Once a state renowned for its independent providers and community-focused care, it now struggles with the growing influence of private equity. Management service organizations, which provide business services to medical practices, have become the tools of outside corporations to bypass state laws that prohibit corporate control of medical practices. Under the guise of administrative support, MSOs exert control over staffing, billing, and treatment protocols. The outcome is a healthcare system where MBAs, not physicians, make the decisions, and patient care becomes secondary. The consequences are glaring across Oregon. In cities like Portland and Eugene, long-standing relationships have deteriorated as private equity-backed entities prioritize high-margin services and decrease time spent with patients to maximize profits. Rural areas face even steeper challenges. Consolidation forces patients to travel long distances for care, disproportionately impacting low-income and underserved populations. This transformation is not merely inconvenient; it endangers the foundational promise of health care to deliver timely, accessible, and compassionate care to all who seek it. The situation for health care workers is equally alarming. Physicians find their clinical decisions overridden by corporate directives focused on profits. Nurses and support staff are pushed to their limits, working in environments plagued by understaffing and relentless cost-cutting. Burnout and turnover rates soar, further destabilizing a system already under significant strain. Transparency is among the most critical issues at stake. Many patients remain unaware that private equity firms control their health care providers, making decisions about pricing, staffing, and care behind closed doors. This lack of transparency undermines trust—a fundamental aspect of effective healthcare delivery—and leaves communities in the dark about the forces shaping their care. One legislative proposal directly addresses these urgent issues. It redefines the control between professional medical entities and management service organizations, ensuring licensed medical providers maintain authority over clinical decisions. It also closes loopholes that permit dual compensation models, where physicians are beholden to these service organizations, ultimately undermining their independence. The legislation also significantly restricts noncompete and nondisclosure agreements, which inhibit transparency and accountability. Violations of these provisions would be regarded as unlawful trade practices, and strong enforcement measures would be enacted to hold violators accountable. This legislation is not just about a regulatory adjustment: it amounts to a moral stance against the commodification of health care. The bill affirms that health care is meant for patients, not investors. It would ensure that Oregon's health care system remains grounded in care, trust, and community values, safeguard providers' independence while protecting patients from predatory practices, and enhance the integrity of our health care system. Oregonians now face a choice: We can allow private equity to continue dismantling the values that make our healthcare system unique or demand transparency, accountability and policies prioritizing people over profits. Enacting legislation to strengthen the prohibition against corporate interference in medicine would reaffirm our commitment to a health care system that serves everyone — not just investors — and preserve the trust and care that characterize Oregon's approach to medicine. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
