Senate passes bill to limit corporate control of medical clinics; substitute minority proposal fails

Senate Bill 951, which tightens Oregon's corporate practice of medicine rules and restricts how management service organizations and investors can influence clinical decisions in medical clinics, passed the Oregon Senate on final reading after floor debate on April 8, 2025. The bill was presented by Senator Patterson as a measure to keep clinical decisions in the hands of licensed medical professionals rather than investors.

SB 951 aims to close what supporters called loopholes that allow private equity and other nonmedical entities to control clinics indirectly (for example through MSOs or captive physician employment arrangements). The bill preserves the ability of management service organizations (MSOs) to provide nonclinical services, but requires that physicians retain final authority over decisions that impact patient care; it also curtails certain contractual restrictions such as noncompete clauses and includes a transition period for existing arrangements.

Proponents said…