After several months of controversy, Vancouver, Wash.-based PeaceHealth and Eugene (Ore.) Emergency Physicians have agreed to “reset” the negotiations surrounding a proposed deal to switch the system’s emergency department staffing partnership to Atlanta-based ApolloMD.
According to a May 6 PeaceHealth news release shared with Becker’s, the system and EEP have “reengaged in constructive discussions and are working jointly to define a path forward that best supports high-quality, reliable care for patients across Lane County.”
The agreement comes after nearly a week of testimony in a case brought against PeaceHealth and ApolloMD by EEP. The lawsuit, filed March 20 in an Oregon state circuit court, claimed the partnership violated the state’s corporate practice of medicine laws, including restrictions on management services organizations.
PeaceHealth said in February it would not renew its 35-year contract with Eugene Emergency Physicians, instead opting to partner with ApolloMD to staff emergency departments at PeaceHealth Cottage Grove (Ore.) Community Medical Center, PeaceHealth Peace Harbor Medical Center and PeaceHealth Sacred Heart Medical Center at RiverBend.
According to the complaint, the arrangement involves a newly formed Oregon entity, Lane Emergency Physicians, which would hold the staffing contract while ApolloMD provides administrative support. The plaintiffs allege ApolloMD would retain significant control over staffing, hiring and other operations.
However, after several days in court, U.S. District Court Judge Mustafa Kasubhai told attorneys that “ample evidence” indicated that operations between the two organizations could have broken the state’s corporate practice of medicine law.
The law has been described as among the nation’s toughest in governing corporate and private equity control of medical practices.The case between PeaceHealth, ApolloMD and EEP could be seen as the first serious test of the law’s scope and influence.
PeaceHealth said it would offer EEP a two- to three-year contract at its Cottage Grove and RiverBend locations, the system confirmed to Becker’s in an email.
“Our shared responsibility is clear: to ensure a well-staffed emergency department that delivers safe, reliable care for every patient,” said Heather Wall, interim chief executive of PeaceHealth’s Oregon region, in the statement. “That remains unchanged, and we will take the steps necessary to meet that responsibility.”
Becker’s has reached out to EEP and ApolloMD and will update this article if more information becomes available.
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