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The Oregon Senate voted Tuesday to pass a bill to address the increasing number of independent medical practices that partner with private equity firms and national healthcare conglomerates to circumvent limitations on corporate control in medicine.
Senate Bill 951, which sets out regulations over corporate ownership of doctor’s offices and medical clinics, passed by 21-8. The bill seeks to underpin Oregon’s prohibitions on corporate control of medical practices and clinics, but opponents argued that the legislation would weaken already struggling medical practices.
Legally, licensed physicians must hold a majority stake of at least 51% in medical practices, but there has been an increasing trend for independent medical practices to use a loophole to partner with national healthcare brands and private equity firms by using management service organizations (MSOs) to contract with clinics to provide financial, administrative and technological support.
Tidings Data Snapshot
Oregon SB 951 – Closing The MSO LoopholeSources: Oregon SB 951 summaries and analysis, AMA 2024 physician ownership updateDailyTidings.com
A physician with no real decision-making power over patient care is then named as the owner of a medical practice on paper.
Tidings Data Snapshot
U.S. Physician Practice Ownership – 2024- 42.2%Private practice
- 34.5%Hospital-owned
- 6.5%Private equity-owned
- 16.8%Other models
Source: AMA physician practice ownership data for 2024DailyTidings.com
The bill doesn’t ban independent practices from partnering with MSOs, but third-party management companies would be barred from making any final calls on patient care, staffing levels, and appointment lengths.
| Focus area | What SB 951 tightens |
|---|---|
| Ownership | Limits MSO and affiliated control or majority influence over professional medical entities, with specific exceptions. |
| Clinic operations | Bars third parties from final say on staffing, scheduling, and other operational decisions that shape patient care. |
| Contracts | Closes gaps tied to restrictive employment terms and expands guardrails around noncompetes. |
| Timeline | New arrangements must comply by 2026, with existing structures given a multi-year transition window. |
The bill also closes the gaps in restrictive employment contracts that lock doctors into corporate-run clinics and deals with noncompete and nondisclosure agreements.
SB 951 would be phased in, giving medical practices three years to comply. The measure now heads to the House for approval.
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