In June 2025, Governor Tina Kotek signed a bill enacting the strictest regulatory regulations on corporate entities in healthcare in the nation.
State House majority leader Ben Bowman recently spoke with the American Medical Association about the process of getting this law passed and what it means for the future of medical practice in the state.
Here are six takeaways from the discussion:
1. The Oregon Medical Association provided testimony in support of the legislation. It asserted during testimony that the law attempts to balance physicians’ interests to care for patients with corporate interests aiming to invest in facilities and make healthcare more efficient while turning a profit.
2. The OMA added that the bill:
- Sets legal standards for how management services organizations, including those backed by private equity, may assist with managing a medical practice.
- Redefines the list of business entities that are allowed to engage in the practice of medicine.
- Addresses the widespread application of noncompetes and other restrictive covenants in clinician contracting.
3. “What we tried to do in Oregon … is to be clear that the corporate practice of medicine doctrine means something more and we expect physicians to be in charge. It doesn’t mean you can’t partner with private equity firms or corporations, but it means at the end of the day when decisions are being made that impact patients, they have to be made by the physicians,” Mr. Bowman said.
4. Maureen Hensley-Quinn, senior program director for the National Academy for State Health Policy, said in a recent AMA panel that members across the country wanted to revise a model piece of legislation that would, among other things, create language to allow states to have more oversight of the major transactions happening between healthcare entities.
5. This model legislation is a “comprehensive approach” to healthcare consolidation, Ms. Hensley-Quinn said. It includes a list of prohibitions that aim to protect physicians and help them maintain control of their practices. It addresses concerns about physicians entering agreements with marketing, human resources and other non-medical entities without understanding key pieces of ownership, hiring and firing decisions.
6. She also noted that California passed similar legislation in 2025 and she is closely watching legislative action in Massachusetts, New Mexico, Texas, Indiana and Vermont.
