Washington state lawmakers are reconsidering anti-corporate medicine legislation after Oregon’s law — considered the strictest in the nation — survived its first major legal challenge involving Vancouver, Wash.-based PeaceHealth, Cascadia Daily News reported June 21.
Washington has failed twice to pass corporate practice of medicine bills, which broadly prohibit corporations and shareholders from owning or controlling medical practices. The Oregon dispute centered on PeaceHealth’s decision to replace Eugene Emergency Physicians, its 35-year ED staffing partner, with Atlanta-based ApolloMD — a move local physicians sued to block under Oregon’s Senate Bill 951. PeaceHealth ultimately reversed course in May, re-signing with the local group after a federal judge found “ample evidence” the ApolloMD arrangement may have violated the law.
State Senator June Robinson, an Everett Democrat and lead sponsor of Washington’s two failed bills, told Cascadia Daily News she is rethinking the legislation nearly from scratch. “Where do you draw that line between, OK, you need capital, you need investment, but how do you prevent that from driving clinical decisions?” Ms. Robinson said. “That line is really tricky to get right.”
Key obstacles remain. The Washington State Hospital Association — which counts PeaceHealth and Skagit Regional Health as members — lobbied heavily against prior versions. Enforcement is also unresolved: the state health department can investigate but not penalize, and standing up an enforcement function at the Attorney General’s office would require new hires and funding during a strained state budget cycle.
Senator. Marcus Riccelli, a Spokane Democrat and co-sponsor, said interest in reintroducing the bill is strong. “Are there people who are beholden to stockholders, pushing out care?” Mr. Riccelli said. “It’s important that patients can trust the decision is for their health and not for profit.”
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