Oregon has officially set a precedent in the healthcare industry by passing a bill that blocks corporations from owning medical practices. The Oregon House passed SB 951 with a motive to keep medical decisions in the hands of healthcare professionals, as reported by the Oregon Legislature House Democrats. The legislation, which ensures that medical practices are owned and controlled by licensed medical professionals, is a response to the increasing trend of corporate ownership of medical practices, which many criticize for prioritizing profits over patient care.
"We're at an inflection point in this country when it comes to the corporatization of healthcare," House Majority Leader Ben Bowman told the Oregon Legislature House Democrats. He referred to the state's 1947 corporate practice of medicine doctrine, the bill aims to update the protections for patient care that have been blurred by modern corporate encroachments.
Proponents of SB 951 argue that the increasing ownership of medical practices by entities like private equity firms and for-profit corporations has been exploiting loopholes in the system. These firms employ physicians who are listed as owners on paper but lack real control, giving rise to concerns over the quality and accessibility of healthcare. According to information obtained from the House Democrats website, SB 951 will effectively close those loopholes.
As consolidation in the healthcare market grows, negative effects such as the quality of care declining, higher prices, and decreased access become more apparent. "This bill is about preventing the kind of takeover that happened at the Oregon Medical Group in Eugene," Rep. Lisa Fragala remarked in an interview cited by the Oregon Legislature House Democrats. With the passage of SB 951, Oregon aims to address these issues head-on. The bill now awaits the signature of Governor Tina Kotek after passing the Senate in a 21-8 vote.
