Here are 10 things to know about the bill and the surrounding legislative discussion:
1. SB 951 is the state’s most recent effort to place restrictions on private equity activity in healthcare.
2. Oregon law currently requires physicians to hold a majority stake in medical practice. Supporters argue that many independent practices are sidestepping the current regulations to align with private equity firms and national healthcare conglomerates.
3. The bill passed through the House with bipartisan support but is stalled in the state Senate.
4. “The good news of that outcome was that we were able to pull together a very comprehensive process to engage stakeholders and make it a better bill,” Rep. Ben Bowman, a sponsor of the bill, told the Oregonian/OregonLive. “This isn’t a partisan issue. It’s about ensuring that when a patient walks into an exam room, their doctor and not a corporation is making medical decisions.”
5. A March 4 hearing showed divisions within the legislature. It drew 108 written statements — 101 of which were in support of the bill — but live testimony was split.
6. Rep. Cyrus Javadi, a co-sponsor of the bill, said it wouldn’t ban independent practices from partnering with MSOs, but would prohibit MSOs from influencing medical decisions and restricting employment arrangements.
7. The bill would also nullify most noncompete and nondisclosure agreements between MSOs and healthcare providers.
8. This version of the bill would also allow the Oregon Health Authority to halt pending and future mergers and acquisitions that would give corporations “excessive influence” over medical practices, according to the report.
9. Under the bill, violations would be treated as consumer protection infractions under the state’s Unlawful Trade Practices Act, giving the attorney general the power to take legal action against these cases and allow physician practices to sue MSOs for overreach.
10. The bill includes a phase implementation, giving practices more than three years to fall into compliance with the law.
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