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OR SB951
Bill
Status
6/20/2025
Primary Sponsor
Deb Patterson
Click for details
AI Summary
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Prohibits management services organizations from exercising de facto control over professional medical entities' clinical operations, including decisions on hiring/firing physicians, setting clinical staffing levels, patient visit times, diagnostic coding, clinical standards, and pricing for medical services
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Requires professional medical corporations to maintain majority physician ownership and board control, with directors and officers removable only by majority vote of physician shareholders except in cases of license revocation, fiduciary violations, fraud, or termination
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Voids noncompetition agreements restricting medical practice between licensees and management services organizations or hospitals, with limited exceptions for physicians holding 10%+ ownership stakes or agreements within 3 years of hire with documented protectable interests
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Voids nondisclosure and nondisparagement agreements between medical licensees and management services organizations or hospitals, while protecting good faith reports of suspected legal violations to authorities from retaliation
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Takes effect immediately upon passage as an emergency measure, with restrictions applying to new entities starting January 1, 2026 and existing entities starting January 1, 2029
Legislative Description
Relating to the practice of health care; and declaring an emergency.
Last Action
Effective date, June 9, 2025.
6/20/2025