Oregon is on the verge of passing a bill that would block private-equity ownership in healthcare practices. If passed, this measure would be the strictest ban on the corporate practice of medicine in the nation (read press release here). The bill would prohibit Management Services Organizations (MSOs) and their affiliates from owning or controlling shares in, serving as directors or officers of, being employees of, or otherwise managing professional medical entities with which they have Management Services Agreements (MSAs). The bill would void restrictive covenants such as non-compete, non-disclosure, and non-disparagement agreements between MSOs and medical professionals, with certain exceptions.
The bill was passed by the Oregan State Senate on May 29th, and as of June 5th, the bill remains awaiting signature with Governor Tina Kotek. To view the bill in its entirety, click here.