Oregon Governor Signs Nation’s Strictest Corporate Healthcare Controls

Oregon Governor Tina Kotek has signed Senate Bill 951 into law, establishing the strictest regulations in the nation on private equity and corporate control of medical practices. The legislation mandates that physicians must hold at least a 51% ownership stake in most medical practices and prohibits corporations and management service organizations from controlling decision-making, while also banning noncompete agreements that limit physician mobility. The law includes a three-year compliance period and exempts hospitals, tribal health facilities, behavioral health programs, and crisis lines. The bill was met with opposition from corporations such as Amazon and groups like the Oregon Ambulatory Surgery Center Association, which argue that private investment is crucial to maintaining clinic access and preventing closures. Supporters, including Oregon House Majority Leader Ben Bowman, say the law is necessary to counter the increasing corporatization of healthcare and ensure medical decisions are made by doctors, not corporate executives. The legislation was partly motivated by concerns over Optum's takeover of the Oregon Medical Group and its use of noncompete contracts, which were later reversed amid legislative pressure.